The Chapter 13 Hardship Discharge

After confirmation of a plan, circumstances may arise that prevent the debtor from completing the plan.  In such situations, the debtor may ask the court to grant a "Hardship Discharge" (11 U.S.C. § 1328(b)).  Generally, such a Discharge is available only if: (1) the debtor's failure to complete plan payments is due to circumstances beyond the debtor's control and through no fault of the debtor; (2) creditors have received at least as much as they would have received in a Chapter 7 liquidation case; and (3) modification of the plan is not possible.  Injury or illness that precludes employment sufficient to fund even a modified plan may serve as the basis for a Hardship Discharge.  The Hardship Discharge is more limited than the Discharge described above and does not apply to any debts that are non-dischargeable in a Chapter 7 case (11 U.S.C. § 523).

** The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.**