Hardship Discharge

Section 1328(b) -- early discharge when you cannot complete your Chapter 13 plan

Filing the Motion

File a motion with the court explaining why you cannot complete payments. Include evidence: medical records, termination letter, death certificate, or disaster documentation.

You bear the burden of proof on all three requirements under Section 1328(b).

The Hearing

The trustee and creditors can object. Common objections: modification is still feasible, best interest test not met.

The best interest test requires that unsecured creditors received at least what they would have gotten in a Chapter 7 liquidation.

Learn about Section 1328

Section 1328 Guide

Related Resources

Section 1328 Discharge -- Chapter 13 discharge rules and the superdischarge

Chapter 13 Plans -- How Chapter 13 repayment plans work and get confirmed

Dismissed Bankruptcy -- What happens when your case is dismissed and next steps

Federal Rules Committee

This research supports Suggestion 26-BK-3 to the Advisory Committee on Bankruptcy Rules

Proposing automated Section 1328(f) discharge bar screening in federal bankruptcy courts