Order granting motion for hardship discharge - Form 23 NOT filed
Understanding this form
The Order granting motion for hardship discharge is a legal document used in bankruptcy cases, particularly under Chapter 13. It provides a way for debtors who are unable to complete their repayment plans due to unforeseen hardships to receive a discharge of their remaining debts. This order is distinct from a standard discharge as it requires an evaluation by the bankruptcy court, ensuring that the debtor has fulfilled certain obligations, such as completing a financial management course.
Key components of this form
- The courtâs jurisdiction and case number for identification.
- The debtor's name and relevant details.
- A section confirming the court's findings supporting the hardship discharge.
- Requirements for completing an instructional course on personal financial management.
- Instruction for filing a certification related to the completion of the financial course.
- Signature line for the bankruptcy judge.
Common use cases
This form is applicable when a debtor in a Chapter 13 bankruptcy has encountered significant hardships that prevent them from making the required payments under their repayment plan. It is typically used after a court hearing where the debtor requests a hardship discharge and presents evidence of their inability to comply with the plan. If approved, this order allows for certain debts to be discharged while ensuring the debtor has taken steps to manage their finances responsibly.
Intended users of this form
- Individuals currently undergoing Chapter 13 bankruptcy proceedings.
- Debtors who face unforeseen financial difficulties such as job loss or medical emergencies.
- Individuals seeking a legal means to have their remaining debts discharged after fulfilling specific conditions.
How to complete this form
- Fill in the district and state of the bankruptcy court hearing the case.
- Enter the debtor's name and case number at the top of the form.
- Detail the courtâs findings that justify granting the hardship discharge.
- Ensure all conditions, including completion of the financial management course, are clearly indicated.
- Sign the document in the appropriate section, and include the date.
Is notarization required?
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to complete and file the financial management course certification on time.
- Skipping required fields, which can lead to delays or rejections.
- Not retaining copies of filed documents for personal records.
Why complete this form online
- Easy access to the form anytime and anywhere for immediate use.
- Ability to download and customize the form quickly to meet specific needs.
- Instant availability of professionally drafted forms, ensuring legal compliance.
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FAQ
About 45 days after you've received your discharge, you will receive a document called a Final Decree. It's the document that officially closes your case. Once this document is received, you are no longer in bankruptcy.
The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.
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.
For most filers, a Chapter 7 case will end when you receive your discharge?the order that forgives qualified debt?about four to six months after filing the bankruptcy paperwork.
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.
The bankruptcy trustee will typically be entitled to claim any non-exempt portion of the settlement and distribute it to creditors.
An "Adversary Proceeding" in bankruptcy court has the same meaning as a lawsuit in other courts. This means that one or more "plaintiff(s)" file a "complaint" against one or more "defendant(s)." In many situations an adversary proceeding is required if a plaintiff wants to obtain a particular type of relief.
Since a chapter 12 or chapter 13 plan may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing.
