What Happens If I Cannot Complete My Chapter 13 Bankruptcy Plan (PartThree)
By Kevin Gipson, New Orleans Bankruptcy Attorney on Feb 18, 2007 in Bankruptcy Practice and Procedure, Chapter 13 Bankruptcy, General Bankruptcy Information
So what happens when you can neither modify your Chapter 13 plan or convert from a Chapter 13 bankruptcy into a Chapter 7 bankruptcy?
You can consider seeking a Hardship Discharge.
A Hardship Discharge can be sought at anytime after the Chapter 13 Plan has been confirmed by the Bankruptcy Court.
In order to qualify for a Hardship Discharge the following criteria must be met:
1) The circumstances leading up to the request for a Hardship Discharge must be beyond the control of the debtor. Examples would be an unexpected loss of income or health problems;
2) The unsecured creditors have received as much as they would have received in a Chapter 7 bankruptcy; and,
3) It is not feasible to modify the plan.
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