Chapter 13 Hardship Discharge Considered by Fair Oaks Bankruptcy Attorney

Although Chapter 13 Bankruptcy is generally speaking a plan whereby you reorganize in an attempt to repay your debt and not discharge it, there are times I found as a Fair Oaks bankruptcy attorney that debt may be discharged.

Chapter 13 Discharge

Discharging debt when filing for Chapter 13 involves some complex issues and a bankruptcy attorney can certainly help in determining if you might qualify. Debts are not forgiven at the start of your repayment plan. They are discharged after the plan is completed.

These debts are usually portions of credit card and other such unsecured debts. Debts that may not be discharged include those taken as secured loans such as mortgages and car loans, child support or alimony, those related to most student loans, debts connected to personal injury or accrued when intoxicated or under the influence, those related to restitution for a crime or the committing of a crime and most tax debts.

Chapter 13 Hardship Discharge

During the three to five year process of paying back your debt under Chapter 13, you may find that you are the victim of hardship.  This can involve a serious illness or a life-changing injury that does not allow for employment substantial enough to pay back your creditors.

You’ll need to prove that the circumstances related to your hardship are no fault of your own, that your creditors have received at least as much as they would have had you filed Chapter 7 and that modifying the repayment plan will not help you repay the debt.

Contact Your Bankruptcy Attorney

As I advise people in my Sacramento bankruptcy office, if circumstances change substantially during the repayment process, they should contact me as soon as possible. Doing so will secure your legal rights.

Please contact our bankruptcy offices serving San Francisco, San Jose, and Sacramento California, at info@california-bankruptcyattorney.com or at 888-589-1977 if you have any questions regarding bankruptcy.