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A hardship discharge in bankruptcy is governed by 11 USC Section 1328(b).  A hardship discharge comes into play after a Chapter 13 bankruptcy plan has already been confirmed by the Bankruptcy Court and at some point during the course of the repayment plan the Debtor or Debtors face an unforeseen unfortunate circumstance.  A job loss or health problem are the most prevalent reasons for petitioning the Bankruptcy Court for a hardship discharge in bankruptcy.  In order to receive a hardship discharge the following elements must be met:

1. The Debtors(s) has experienced a circumstance beyond his or her control that makes it impossible to continue to make Chapter 13 payments,

2. The payments made into the plan are at least the total amount that the creditors would have received through a Chapter 7 Bankruptcy, and

3. It is not feasible to otherwise modify and continue paying towards the confirmed Chapter 13 payment plan.

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadek-cooper-site. Thank you.