Many debtors considering bankruptcy worry that they will be forced to continue their Chapter 13 bankruptcy plan even if they can no longer work because of an injury or other valid reason.  If for some reason a debtor in Chapter 13 bankruptcy is unable to continue his/her bankruptcy repayment plan, he/she may be eligible for a “hardship discharge.”

What that means is that the bankruptcy court will forgive the balance of your debt, relieving you of any obligation to repay the debt.  However, certain debts may not be discharged such as, child support payments, student loans and certain taxes .  Also, a debtor seeking a “hardship discharge” in Chapter 13 bankruptcy must be approved by the bankruptcy court.  Hardship discharge is usually only available for debtors who have a significant injury or are unable to work for some other valid reason.

For example, if a debtor working as a house painter lost use of his/her sight and could no longer work, he/she may be eligible for a “hardship discharge” in Chapter 13 bankruptcy. Speak with your bankruptcy attorney to find out what other eligibility requirements you need to meet for a “hardship discharge” in Chapter 13 bankruptcy.