Hardship Discharge

The different chapters of the United States Bankruptcy Code are designed to offer relief to individuals or organizations in different situations and states of financial duress. Chapter 13 bankruptcy offers individuals a number of advantages over other possible options. One of the largest of these advantages is the chance that a person filing for Chapter 13 may qualify for a “hardship discharge.”

If you have found yourself under a significant amount of debt, bankruptcy may be a good option for getting a fresh financial start. Still, the prospect of pursuing bankruptcy can be very intimidating. Consulting a legal professional, such as the New Orleans bankruptcy attorneys of the Law Office of David D. Kervin, Jr., LLC can help make the entire process a little less scary and confusing. Contact us today at 504-599-5906 today for more information.

What Are Hardship Discharges?

When a person files for Chapter 13, he or she may have the chance to lump all of his or her debts into one monthly payment. This can be a good way to effectively reduce the total amount of debt and make paying off creditors a simpler process. Unfortunately, it can also mean that the single payment will likely be larger than individual payments would be otherwise, making it a difficult commitment to fulfill in times of financial hardship.

If this financial hardship is out of the debtor’s control and is caused by an event such as a death in the family or an unexpected medical procedure, the person may be able to have their bankruptcy case discharged. Two further requirements for hardship discharge are that a) the case must not be “modifiable” and b) the Chapter 13 plan must provide more benefits than would have been available through Chapter 7.

Contact Us

Regardless of whether you plan to file under Chapter 13 or a different chapter of the bankruptcy code, it is important to consult an experienced legal adviser before pursuing a bankruptcy case. To discuss the specifics of your circumstances, contact the New Orleans bankruptcy lawyers at the Law Office of David D. Kervin, Jr., LLC today by calling 504-599-5906.