Hardship Discharge

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

Circumstances Beyond Your Control

Job loss (not voluntary resignation), serious illness or disability, death of a spouse, natural disaster, incarceration. The failure to complete must be due to circumstances for which you should not justly be held accountable.

What Usually Does NOT Qualify

Temporary setbacks generally do not qualify. Courts expect you to try plan modification first.

Voluntary lifestyle changes, poor financial decisions, and failure to look for work are unlikely to meet the standard.

Explore plan modification

Chapter 13 Plan 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