If you are one of the many people in Tennessee who has filed for debt relief via a Chapter 13 bankruptcy, you will know that this is not a quick fix to your debt problems. You are initially obligated to make monthly payments to a trustee for a minimum of 36 months and possibly for as long as 60 months. During such a long span of time, many things in your life may change and you might find yourself in a situation that makes it all but impossible for you to keep up with your bankruptcy payments.
If this happens to you, you should know that you might be able to qualify for what is called a hardship discharge. As explained by the United States Courts, this may offer people who fall on hard times a way out of their Chapter 13 responsibilities earlier than they had planned or promised. One of the criteria for qualifying for this type of discharge is that your creditors should have been paid at least the amount they would have received if you had originally filed for a Chapter 7 bankruptcy.
The hardship discharge is also only available to people who are in difficult situations not created by themselves or that are out of their control. Being diagnosed with a terminal illness or being involved in an accident that precludes you from working are examples.
If you would like to learn more about the types of discharges that may be available to you with a bankruptcy or your options if you cannot complete a bankruptcy, please feel free to visit the hardship discharge page of our Tennessee Chapter 13 bankruptcy website.