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Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, confirm that any debtor who qualifies for Chapter 13 bankruptcy get numerous benefits including protection from collection actions taken by creditors. While people filing for Chapter 7 often end up losing some of their property in order to get a bankruptcy discharge, Chapter 13 bankruptcy filers can keep the non-exempt property if they pay their creditors a portion of the amount. Sometimes, however, unforeseen circumstances might force debtors to face unexpected financial problems which might make it difficult to make payments as per the court approved repayment plan. In such circumstances, they can seek a hardship discharge.
Debtors can get relief from some or all their debts under hardship discharge without completing the repayment plan. Though it seems unbelievable, it is true. However, there are stringent measures in place since the court cannot hand out complete discharges without payment. In case a debtor seeks hardship discharge they must:
- Be unable to make payments as per the repayment plan, without any fault of theirs’.
- Have made substantial payments to the creditors, more than they might have received in case of a Chapter 7 liquidation bankruptcy.
- Cannot even afford to complete a modified repayment plan.
Such relief is available to people who have fallen ill and cannot earn enough to repay their debts. In case you find yourself in a situation where a hardship discharge is your only hope, it is important that you consider all factors before making any decision. Having an experienced bankruptcy attorney can surely be an asset in such a case. In case you need to consult your case with adept lawyers, you can call 888-297-6023.