What is the difference between a hardship discharge and a regular discharge in Chapter 13 Bankruptcy?

A hardship discharge and a regular discharge are two separate types of Chapter 13 bankruptcy law in South Carolina. A regular discharge is the most common type of discharge in a Chapter 13 bankruptcy. This type of discharge releases a debtor from the legal obligation to repay several of their debts. The court will usually look at a debtor’s income, expenses, assets, and liabilities to determine if they are eligible for this type of discharge. In order for the debtor to qualify, they must not have any disposable income to pay off their debt after their reasonable expenses have been accounted for. A hardship discharge is a different type of discharge in a Chapter 13 bankruptcy and is more difficult to obtain. This type of discharge is typically granted when a debtor can’t continue to make their Chapter 13 payments due to unavoidable circumstances, such as a job loss or medical emergency. In order to qualify for a hardship discharge, a debtor will have to prove to the court that they are not able to make the payments required by their Chapter 13 plan. If they are successful in their attempt, then their unsecured debts can be eliminated without having to repay any of them. Both a regular discharge and a hardship discharge are available to debtors in Chapter 13 bankruptcy law in South Carolina. A regular discharge releases a debtor from their debt obligation, while a hardship discharge allows a debtor to have their unsecured debts cleared without having to pay anything. Depending on their circumstances, a debtor can choose the right type of discharge for them when filing for Chapter 13 bankruptcy.

Related FAQs

What is the difference between a hardship discharge and a regular discharge in Chapter 13 Bankruptcy?

Related FAQs

Related Blog Posts