When you file for a Chapter 13 bankruptcy in Nashville, you likely will not receive a discharge until the completion of your repayment plan. Since Chapter 13 lasts for three to five years, one or more financial circumstances may arise to interfere with your repayment plan.
You should not simply abandon your efforts or stop making payments when facing challenges in Tennessee. Doing so could result in a dismissal of your bankruptcy, leaving your creditors free to resume their collection attempts.
Is a hardship discharge an option?
If hardships arise and you find that you can no longer meet your repayment plan obligations, do not lose hope. You might be able to find relief through a Chapter 13 hardship discharge.
To qualify for a hardship discharge, you must meet several requirements. Three examples of these requirements include:
- You cannot complete your repayment plan due to circumstances beyond your control and not your fault. For example, a severe injury or illness reduced your income, resulting in the inability to make your payments.
- The creditors you owe have already received as much as they would have received if you had chosen a Chapter 7 bankruptcy. For example, if your repayment plan was nearing its end when your hardships arose, you might have paid enough back to qualify.
- Your circumstances are such that modifying your Chapter 13 bankruptcy plan will not allow you to complete your repayment obligations. For example, a catastrophic car accident left you disabled and unable to work.
We urge you to learn more about your options if your Chapter 13 bankruptcy is not proceeding according to your plans. With proper guidance, you could qualify for a hardship discharge, leaving you free to begin rebuilding your financial prospects.
