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

A Chapter 13 Bankruptcy is a debt repayment plan administered through the courts in Washington. A regular discharge is received at the end of the repayment plan and a hardship discharge is received if the debtor is unable to make the payments outlined in the repayment plan. A regular discharge is when a debtor has successfully completed the repayment plan and made all the payments as outlined. The debtor is no longer responsible for repaying the debts. The debt is considered paid in full even though the debtor may have not paid the full amount to creditors. A hardship discharge occurs when a debtor is unable to make payments in their repayment plan and is unable to modify the plan. The debt is discharged, but creditors may still have the right to collect the remaining debt in certain circumstances. This is why it is important for a debtor to continue to make payments until the end of the repayment plan. Additionally, a hardship discharge can come with other terms, including that the debtor may not be eligible to file for bankruptcy in the future. It is important to understand the differences between a regular discharge and a hardship discharge before deciding which one is best for you.

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

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