Kentucky Chapter 13 Hardship Discharge is a court-ordered process in which a debtor can receive a discharge of remaining debt balances after completing a repayment plan. The debtor must demonstrate that they are unable to make the payments required by their repayment plan due to a hardship, such as a job loss, illness, or other extenuating financial circumstances. There are two types of Kentucky Chapter 13 Hardship Discharge: (1) partial hardship discharge and (2) total hardship discharge. A partial hardship discharge will discharge a portion of the debtor's unsecured debt, while a total hardship discharge will discharge all the debtor's unsecured debt. The amount of debt discharged in either case is determined by the court. To be eligible for a Kentucky Chapter 13 Hardship Discharge, the debtor must have completed all of their repayments under their repayment plan, have experienced an unforeseen and unexpected hardship, and must demonstrate that they are unable to make the payments required by their repayment plan.
Kentucky Chapter 13 Hardship Discharge
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How to fill out Kentucky Chapter 13 Hardship Discharge?
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FAQ
Some examples of dischargeable debts in Chapter 13 include credit card debt, medical bills, utility bills, and personal loans. Unsecured Debts ? Unsecured debts are not linked to any collateral, such as utility bills and medical bills.
To obtain the hardship discharge the debtor must first show an inability to continue making the scheduled Chapter 13 plan payments. In other words, something has happened to you financially that reduced your income or ability to pay your creditors. The change in finances must be beyond the debtor's control.
Hardship vs Dependency. Terminology can get confusing because "hardship" and "dependency" discharges are often both loosely labeled "hardship." Specifically, a hardship discharge is when the financial needs of family member(s) require more than the military member can provide while remaining in the military.
Debts not discharged in chapter 13 include certain long term obligations (such as a home mortgage), debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayments, debts arising from death or personal injury caused by driving while intoxicated
Terminology can get confusing because "hardship" and "dependency" discharges are often both loosely labeled "hardship." Specifically, a hardship discharge is when the financial needs of family member(s) require more than the military member can provide while remaining in the military.
If your Chapter 13 plan payment is too high, you can sometimes get it lowered if you encounter a reduction in household income. If your income reduces, you are many times also allowed to reduce your plan payment. This is accomplished usually by filing a Motion to Modify your Chapter 13 plan.
It's designed so you'll pay the amount you can afford. Therefore, the court will only let you complete your Chapter 13 bankruptcy early under two conditions: You can pay all of your claims, including unsecured debts, in full, or you can prove a financial hardship.
