Chapter 13 Hardship discharge!!

[Summer]

Has anyone ever requested a hardship discharge? Is it impossible to do? Also we are scheduled to make payments for 5 years in our c13, I heard it's possible for the trustee to give a discharge as early as 3 years? I would appreciate any feedback. THANKS

[Juicy]

jobless

I'm halfway through a 5-year plan. i'm losing my job and after my jobless benefits run out next year, my lawyer is planning to seek a hardship discharge. i won't have any income coming in. he said there should be no trouble in getting the discharge. good luck.

[hhou812hh]

I'm halfway through a 5-year plan. i'm losing my job and after my jobless benefits run out next year, my lawyer is planning to seek a hardship discharge. i won't have any income coming in. he said there should be no trouble in getting the discharge. good luck.

That's good to know. (not you losing your job is good, but the hardship discharge is good to know). I will be going into a ch13 plan real soon and now rumors are flying around the office that my company maybe sold in the next year. We should be safe, but just in case anything happens to my job at least I know this.

Thanks again!

[hhou812hh]

I did more reading on this. As long as you are in a situation that is beyond your control such as illness, injury, unemployment due to a layoff,etc. and you paid into the plan at least what creditors would have gotten if you filed a ch7 then the courts may grant you one.

[HHM]

I did more reading on this. As long as you are in a situation that is beyond your control such as illness, injury, unemployment due to a layoff,etc. and you paid into the plan at least what creditors would have gotten if you filed a ch7 then the courts may grant you one.

That is the key for hardship discharge, you have to have paid at least what the creditor would have had in a Chapter 7.

Your other option is to convert you case to a chapter 7, that means you have to go through the chapter 7 process, but it is an option. (assuming your case wasn't converted from a chapter 7 to a 13 in the first place).

[Lacy]

I know this thread is old one but came across it in my search looking for info on chapter 13 hardship discharge.

I was wondering if I may be able to file one?? ..... My husband just recently passed away and he was the sole income provider. I only have 9 months left on our 5 year pay out. His vehicle is on it though and also wondered if I would lose it if I filed for one ??

Any help would be greatly appreciate.. Thanks.

[rrockinggramma]

so you have no income? Definitely let your attorney know. The problem with the vehicle is that if you still owe on it and you don't make the payments, they could repossess. You might be able to convert to a chapter 7 and then just stay current on the car. Sorry about your husband's passing.

[Flamingo]

[Lacy]

so you have no income? Definitely let your attorney know. The problem with the vehicle is that if you still owe on it and you don't make the payments, they could repossess. You might be able to convert to a chapter 7 and then just stay current on the car. Sorry about your husband's passing.

Thank you for responding...



My son and I will be drawing SS so will have that income coming in. I do not want to lose the vehicle though. If I filed chapter 7 wouldnt I have to start all over on what was orginally owed on it ?

[Lacy]

Thanks for the info... but I really dont understand all that. Not to law smart here.

[Flamingo]

Thanks for the info... but I really dont understand all that. Not to law smart here.

That's because it was directed to the OP.  In basic layman's terms, unless you meet certain requirements to qualify for a Hardship Discharge in a Chapter 13, you will not be able to get one.  I went back and read your postings and am sorry about your husband.  With you so close to the end of your Plan (only 9 months left of payments), you should check with your attorney as to what, if anything, can be done when your incoming money stops as you state it will do soon.  Have you discussed anything at all with your attorney after your husband's passing?

[Lacy]

That's because it was directed to the OP.  In basic layman's terms, unless you meet certain requirements to qualify for a Hardship Discharge in a Chapter 13, you will not be able to get one.  I went back and read your postings and am sorry about your husband.  With you so close to the end of your Plan (only 9 months left of payments), you should check with your attorney as to what, if anything, can be done when your incoming money stops as you state it will do soon.  Have you discussed anything at all with your attorney after your husband's passing?

Well the OP that started this thread was over 3 years ago. I apology for bumping a old thread. I guess I should of started a new one.



I did contact my attorney that handled the chapter 13 for us yesterday. Someone was suppose call me back. Which they never did. So called back this morning and was told being it is a holiday weekend no one was really in the office that could help me. The lady on the phone started asking questions where I heard about a hardship. She said she didn't think they had handle one of them before. She said she talk to the head attorney there on monday and would call me back.



So guess have to wait until monday to see what my options are.

[liz417]

[QUOTE=hhou812hh;11552]...you paid into the plan at least what creditors would have gotten if you filed a ch7 then the courts may grant you one.[/QUOTE]

Silly Question: I've seen this quote before...WHAT DOES IT MEAN?? I thought that when you file chapter 7, the creditors get NOTHING!!!! Am I missing something??!!!???

[woeisme]

[QUOTE=liz417;172456]

...you paid into the plan at least what creditors would have gotten if you filed a ch7 then the courts may grant you one.[/QUOTE]

Silly Question: I've seen this quote before...WHAT DOES IT MEAN?? I thought that when you file chapter 7, the creditors get NOTHING!!!! Am I missing something??!!!???

Some Chapter 7 cases are "no asset", which is what you are describing where the creditors get nothing. Others are "asset" cases, where the debtor has more assets than they can legally exempt in CH 7, so must give up those assets, and the proceeds are distributed amongst the creditors. You can't protect all the equity in your house in many states, for example, or your car, and on and on. So a CH 13 plan must propose to pay the creditors at least as much as what you would have had to pay if you liquidated your non-exempt assets and distributed the proceeds to the creditors. Hope that answers your question.

[MajorMike]

What if you get unemployment compensation? Can you still get a discharge or do you have to have NO income coming in?