Hardship Discharge

A hardship discharge of a bankruptcy case can be requested in the event that debtor or co-debtor has passed away leaving it impossible to successfully complete the Chapter 13 bankruptcy. A death certificate must be provided and an appointment with attorney be set to discuss all options.

If the debtor with the primary income source has passed away and the spouse is left unable to sucessfully complete the bankrutpcy then some of the property being paid in plan may be surrendered or arrangement made with creditor outside the bankruptcy to retain the property. However, if there are any life insurance policies left the to living spouse then the trustee may not allow the hardship discharge.

Consult with your attorney to discuss if hardship discharge or possible conversion the Chapter 7 bankrutpcy case is your best option.

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