Alabama Chapter 13 Motion for Hardship Discharge

State:
Alabama
Control #:
AL-BKR-808M
Format:
Word
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Description

Chapter 13 Motion for Hardship Discharge An Alabama Chapter 13 Motion for Hardship Discharge is a legal document filed with the bankruptcy court that, if approved, will allow the debtor to obtain a full debt discharge without having to complete their full Chapter 13 repayment plan. This type of discharge is typically reserved for individuals who cannot complete their repayment plan due to circumstances beyond their control. There are two main types of Alabama Chapter 13 Motion for Hardship Discharge: the “ordinary” hardship discharge and the “special circumstances” hardship discharge. The ordinary hardship discharge is granted if the debtor can prove that their inability to complete the repayment plan was due to an illness, disability, or other circumstances that make it impossible to continue paying. The special circumstances hardship discharge is granted if the debtor can prove that their inability to complete the repayment plan was due to a dramatic change in their financial situation, such as the loss of a job or a decrease in income, that make it impossible to continue making payments. In either case, the debtor must provide evidence to support their claim of hardship and must demonstrate that all of their disposable income is being used to pay their living expenses and to make payments on their debt. If the court approves the discharge, the debtor will no longer be responsible for any remaining debt.

An Alabama Chapter 13 Motion for Hardship Discharge is a legal document filed with the bankruptcy court that, if approved, will allow the debtor to obtain a full debt discharge without having to complete their full Chapter 13 repayment plan. This type of discharge is typically reserved for individuals who cannot complete their repayment plan due to circumstances beyond their control. There are two main types of Alabama Chapter 13 Motion for Hardship Discharge: the “ordinary” hardship discharge and the “special circumstances” hardship discharge. The ordinary hardship discharge is granted if the debtor can prove that their inability to complete the repayment plan was due to an illness, disability, or other circumstances that make it impossible to continue paying. The special circumstances hardship discharge is granted if the debtor can prove that their inability to complete the repayment plan was due to a dramatic change in their financial situation, such as the loss of a job or a decrease in income, that make it impossible to continue making payments. In either case, the debtor must provide evidence to support their claim of hardship and must demonstrate that all of their disposable income is being used to pay their living expenses and to make payments on their debt. If the court approves the discharge, the debtor will no longer be responsible for any remaining debt.

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13 Hardship Discharge Form