To qualify for a Chapter 13 hardship discharge in Michigan, you must demonstrate circumstances beyond your control that prevent you from completing the repayment plan, show that unsecured creditors have received payments equivalent to what they would have under Chapter 7, and prove that modifying your repayment plan is not practical.
At Kostopoulos Bankruptcy Law, we understand how overwhelming financial challenges can be. With decades of experience helping Michigan residents secure debt relief, we’ll guide you through the requirements and process for obtaining a hardship discharge in Chapter 13 bankruptcy. Let’s explore who qualifies, how to apply, and the benefits of this vital bankruptcy tool.
Continue reading “How to Qualify for Chapter 13 Hardship Discharge in Michigan”
FAQs About Chapter 13 Hardship Discharge in Michigan
Key Differences:
Eligibility: A hardship discharge requires proof of uncontrollable hardship, while Chapter 7 requires passing the means test.
Process: Conversion to Chapter 7 may involve a new trustee and additional court filings.
Debt Relief: Both options discharge unsecured debts but have different asset implications.
Steps to Reopen:
File a motion explaining why reopening the case is necessary.
Provide supporting evidence, such as proof of hardship.
Attend a court hearing to present your case to the judge.