Chapter 13 Hardship Discharge

Chapter 13 Hardship Discharge

Struggling With A Chapter 13 Repayment Plan?

You may be eligible for a Chapter 13 hardship discharge if you are struggling with your repayment plan. Call Weintraub & Selth, APC, to discuss this option as the chances of getting your hardship discharge may be greatly improved with experienced attorneys assisting you.

If you have recently decided to file Chapter 13 bankruptcy, call our experienced Los Angeles Chapter 13 bankruptcy attorneys. We can help you create a repayment plan that is realistic for you but that will also get approved by creditors and the bankruptcy court. Because the repayment plan may last up to five years, planning ahead and being realistic about how much you can pay is essential. However, even with the most careful planning, your repayment plan may have become unmanageable due to uncontrollable changes in your life.

Call 310-584-7702 to discuss the hardship discharge or other options you may have for getting your Chapter 13 repayment plan under control including a hardship discharge.

Getting A Hardship Discharge Approved

Even if you have not met all the requirements of the Chapter 13 repayment plan, you may be able to have some of the debts you owe discharged. Typically, these are the details that need to be considered for such a discharge:

  • You cannot complete the repayment plan due to circumstances “for which you should not justly be held accountable.” You must show that the unfortunate circumstances are permanent such as a catastrophic injury or illness that will prevent you from maintaining a job.
  • You have already paid a considerable amount of your debt which equals the amount you would have repaid had you liquidated your assets under Chapter 7.
  • If you are unable to meet your repayment obligations, a modification to the plan may be suggested. However, to get a hardship discharge, you would have to show that even a modified repayment plan would be unacceptable and you would still be unable to pay.

If you cannot make your payments on the approved plan, do NOT simply stop making your payments. Significant penalties will be imposed. You must have a hardship discharge approved. Even if the discharge is approved by the court, not all your debts will be discharged. Some debts that may not be dischargeable include secured debts, arrears on secured debts, student loans, criminal fines and many others. Call Weintraub & Selth, APC, for more details about the hardship discharge including how you may qualify and what to do if a creditor objects to your request for a hardship discharge.