Despite your best efforts, you may fail to meet your obligations in Chapter 13 bankruptcy. If this happens, you may be able to get a hardship discharge, which is simply a discharge you get before meeting all the original requirements of your bankruptcy case. However, a hardship discharge isn't a walk in the park; you have to meet all these three conditions:
Modifying Your Plan Isn't Feasible
The first thing the court expects you to do when your financial situation takes a turn for the worse is to petition for a plan modification.
Filing for bankruptcy is a big step to take in life, and this is why you will be required to take a credit counseling course before you actually file. This course is designed to help you make the right decision with your finances, and it will teach you a lot of different things. Here are four things you should know about the course you will be required to take before you can file your bankruptcy paperwork.
In a Chapter 7 bankruptcy filing, most of your debts are discharged and you no longer have to worry about paying them. However, there are some instances in which a creditor might successfully challenge the discharge and you still have to pay the debt. If a creditor is challenging a debt, here is what you need to know.
Why Is the Creditor Challenging the Debt?
After you file for a Chapter 7, all of your creditors listed on your petition documents are notified that you are seeking a discharge of your debts.
In today's world, it can be easy to get into a lot of debt quickly. Many people have more than one credit card and it can be tempting to charge things that you want when you can't afford to buy them otherwise. Unfortunately, those charges all add up and can quickly turn into a nightmare with debt collectors calling you several times a day. One way to alleviate that financial stress is to file for Chapter 7 bankruptcy.
People who have a substantial amount of unsecured debt may find relief through bankruptcy. Chapter 7 bankruptcy can be used to discharge debt and alleviate the need to repay lenders. However, there are circumstances that can disqualify you from filing Chapter 7. Here are a few:
How much disposable income do you have?
Disposable income is the amount of money you have left over after your expenses are paid. It is calculated using your most recent six months of income.