Motion for Hardship Discharge is a legal process that allows a person who is unable to pay their debts to be relieved of their obligation to do so. This type of motion is usually used in cases of extreme financial hardship, such as when a person is facing foreclosure, medical bills, or other pressures that make it impossible to pay their debts. The motion is typically filed in the court where the debtor resides. There are two types of Motion for Hardship Discharge: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Chapter 7 Bankruptcy is a liquidation of all the debtor's assets, with the proceeds used to pay off their creditors. Chapter 13 Bankruptcy is a reorganization of the debtor's debts, which allows them to pay off their creditors over a period of three to five years. In both cases, creditors must be notified of the Motion for Hardship Discharge and given the opportunity to respond. If the motion is approved, the debtor will be relieved of their obligation to pay their debts.
Motion for hardship discharge
Description
Definition and meaning
A Motion for Hardship Discharge is a request filed by a debtor in bankruptcy when they can no longer make payments under a confirmed repayment plan. This motion seeks to obtain a discharge from further obligations despite incomplete payments due to unforeseen circumstances. By filing this motion, the debtor aims to demonstrate valid reasons for their inability to fulfill the plan, ensuring that creditors do not have the right to demand payment after the discharge is granted.
How to complete a form
To successfully complete the Motion for Hardship Discharge, follow these steps:
- Identify all relevant information about your case, including the case number and the court name.
- Detail the circumstances that led to your inability to complete the payment plan in the specified section.
- Include the total amount paid to unsecured creditors, as well as the total value of the assets in your estate.
- Explain why modifying the existing plan is not feasible.
- Confirm completion of the required financial management course.
Who should use this form
This form is intended for individuals who have filed for Chapter 13 bankruptcy and have been unable to complete their payment plans. It is particularly suited for those who have experienced unexpected financial hardships such as job loss, medical emergencies, or other circumstances beyond their control that impede their ability to meet payment obligations under their approved plan.
Key components of the form
The Motion for Hardship Discharge includes several essential components:
- Debtor’s Information: Personal details of the debtor including name and contact information.
- Payment History: Documentation of payments made towards unsecured creditors.
- Account of Hardship: A detailed explanation of extenuating circumstances preventing payment completion.
- Financial Management Course Certification: Evidence of course completion or acknowledgment of the requirement.
Common mistakes to avoid when using this form
When completing the Motion for Hardship Discharge, be mindful of the following common mistakes:
- Failing to provide comprehensive details regarding the hardship circumstance.
- Neglecting to document total payments made to unsecured creditors accurately.
- Not completing the required financial management course and failing to submit proof.
- Submitting the motion without appropriate signatures or dates.
How to fill out Motion For Hardship Discharge?
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FAQ
The simplest way to get a discharge is to put in your time, receive an honorable discharge and walk away. It's also possible to leave the Army earlier if you fail to meet its military standards in some fashion. Contrary to popular legend, that doesn't mean your discharge must have been a dishonorable one.
You can apply for a discharge based on the ?genuine dependency or undue hardship? being a member of the military is causing if all of the following conditions are met: The hardship is severe and not temporary. It has developed or gotten worse since your entry into the military.
§ 1328(b) without completing all of the requirements under the chapter 13 plan. A discharge pursuant to § 1328(b) is referred to as a ?hardship discharge.? This order does not close or dismiss the case. This order means that no one may make any attempt to collect a discharged debt from the debtors personally.
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."
Counselors at the GI Rights Hotline have helped many people in the military get honorably discharged for hardship/dependency. Usually within 4-10 weeks after applying, people are free from their military obligations and able to help their family members.
An obvious benefit of a hardship Discharge is the ability to work through the hardship itself. Also, the discharge paperwork will have a discharge characterization, which means it is likely to either be Honorable or General under Honorable Conditions. Also, in most cases, service members receive their discharge.
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.