Qualifying for a Hardship Discharge
Filing for bankruptcy is often perceived as a concession; however, in many respects, bankruptcy is a route to financial independence and freedom. Chapter 13 bankruptcy offers many benefits to debtors that Chapter 7 does not. One such perk is that debtors may qualify for a hardship discharge if extenuating circumstances prevented them from fulfilling their payment obligations.
If you or someone you know is considering filing for bankruptcy, you will need the help of an experienced bankruptcy attorney. Contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. to discuss your legal options. Call 561-353-2800 today to get back on the path to financial freedom.
What Is a Hardship Discharge?
If a debtor fails to satisfy his or her repayment plan because of external hardships, such as serious injury or illness, sudden death of a family member, etc., a bankruptcy judge may allow him or her to discharge existing debts; however, there are certain stipulations for a hardship discharge, such as:
- Creditors must have received as much as they would have in the case of a Chapter 7 liquidation
- Modification to the debtor’s repayment plan is not possible
- The hardships were completely out of the debtor’s control
If you are experiencing unpreventable hardships and are unable to fulfill your repayment plan, speak with an experienced bankruptcy attorney about the possibility of a hardship discharge.
Contact Us
For more information about how to recover from debt, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. by calling 561-353-2800 today.
