If you are considering a Chapter 13 bankruptcy, something you might also be worried about is not being able to make your monthly payments on time for the length of the bankruptcy. This is something that you should discuss with your attorney because there is a possibility of a Chapter 13 hardship discharge if you’re unable to complete the program in some cases.
The Chapter 13 hardship discharge can be requested if your circumstances change and you’re unable to complete the bankruptcy program. For example, if you fall ill and are unable to work and complete the program, then there could be an opportunity for a hardship discharge.
To get a hardship discharge, you’ll need to prove a few things. First, you’ll need to show that the hardship was due to circumstances out of your control. Second, you need to show that creditors received as much or more than they would have received if you’d had a Chapter 7 bankruptcy. Third, you need to show that there is no way a modification of the plan would be successful because of you being unable to have substantial employment.
It can be frustrating when you’re working through something as serious as bankruptcy and run into trouble, but even then, there are solutions. It’s important to discuss issues you’re having with your attorney as soon as possible so that they can start the paperwork for a hardship discharge if they believe that you will be able to qualify. Our website has more information on a hardship discharge and what to do if you think you need to apply.