Lincolnwood Bankruptcy Attorney Illustrates The Hardship Discharge U...

In certain cases, you can receive a hardship discharge according to Lincolnwood bankruptcy attorney.  A hardship just charge under Chapter 13 is when you have not completed all of your required Chapter 13 plan payments but the court, upon motion from your attorney, will grant you a discharge anyway.  There are several steps that have to be taken before this can happen.  The first being that creditors must have received already through there Chapter 13, at least what they would have gotten during a Chapter 7 liquidation.  

Two, a motion needs to be brought by your attorney alleging specific facts which would grant the court or allow the court to grant you a hardship discharge.  For example, maybe you paid in four 3 1/2 years and all of a sudden you lost your job and you are going to move out of the jurisdiction.  Or maybe you’ve become ill but you have already paid in a good amount under your Chapter 13 to the point where the court feels you should be granted a hardship discharge.  Your attorney will be best suited to bring the appropriate motion at the appropriate time. 

The key to a hardship discharge, once again, is creditors must have received already through your Chapter 13, at least what they would have gotten under Chapter 7.  If you can satisfy that test and convince the court that you no longer have the ability to make plan payments, you will likely be granted a hardship discharge under Chapter 13.