What is a Hardship Discharge in Chapter 13 Bankruptcy?
If you are filing for Chapter 13 bankruptcy or you have already filed for Chapter 13 bankruptcy, you likely have some idea about how this process works. Unlike a Chapter 7 bankruptcy that results in your non-exempt property being liquidated to repay creditors so that you can obtain a relatively quick discharge, Chapter 13 bankruptcy is a much longer process. For most consumer debtors, the Chapter 13 bankruptcy process lasts between three and five years, after which point the debtor can have remaining debts discharged. Yet sometimes the debtor needs to seek a discharge earlier in the case. In such situations, it is important to learn more about a hardship discharge in a Chapter 13 bankruptcy case . Understanding How Chapter 13 Bankruptcy Works In order to understand why a hardship discharge may be necessary, you will need to have a clear understanding of the Chapter 13 bankruptcy process . As part of a Chapter 13 bankruptcy case, the debtor develops a repayment plan through which sh...