25 Jul Options To Dismissal For Failed Chapter 13 Part 2
In Part 1 I provided a general overview of some options that may be available to you if you have found that you are no longer able to make the payments required by your Chapter 13 Plan.
One possible option is a Hardship Discharge.
If your financial situation has changed and the changes have made it impossible to continue with Chapter 13 Plan payments AND it is not possible to modify the Chapter 13 Plan to make the plan work, the Bankruptcy Court can grant a Hardship Discharge.
Some examples of grounds for a Hardship Discharge include a major change in the debtor’s ability to pay such as a job loss, health problems, or the death of a debtor.
A Hardship Discharge can give you many, if not all of the advantages of a discharge after a fully completed Chapter 13 Plan particularly when dealing with secured debts.
Talk with an experienced bankruptcy attorney about your options.
In Part 3 I will discuss the option of Chapter 13 Plan Modification.
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