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The Chapter 13 Hardship Discharge After confirmation of a plan, circumstances may arise that prevent the debtor from completing the plan. In such situations, the debtor may ask the court to grant a "hardship discharge."
In Chapter 13 bankruptcy, the debtor proposes a repayment plan to manage a portion of their debts over three to five years. The remaining debts are typically discharged at the end of the repayment plan. Monthly payment amounts vary greatly, as one of the factors they are based on is disposable income.
To object to the debtor's discharge, a creditor must file a complaint in the bankruptcy court before the deadline set out in the notice. Filing a complaint starts a lawsuit referred to in bankruptcy as an "adversary proceeding."
Dischargeable Debts ? As opposed to nondischargeable debts, these debts are up for discharge (elimination) when your case concludes. Some examples of dischargeable debts in Chapter 13 include credit card debt, medical bills, utility bills, and personal loans.
A bankrupt's discharge may be opposed by creditors, the LIT or the BIA if the bankrupt has failed to meet his/her obligations or has committed an act of misconduct under the Bankruptcy and Insolvency Act (BIA) (see section 173 (1) of the BIA ). The Court will then review the opposition and render a decision.