Hardship Discharge - Chapter 12

Rev. 1/15/2019

 

11 U.S.C. § 1228

 

 

If payments under a plan are not completed due to circumstances for which the debtor "should not justly be held accountable" 11 U.S.C. § 1228(b)(1), and other statutory criteria have been met, a debtor may be excused from completing payments under a plan of reorganization.

 

A discharge granted under section 11 U.S.C. § 1228(c) is often referred to as a "hardship discharge".

 

 

Docket Event:

 

[Bankruptcy> Motions/Applications> Hardship Discharge]

 

Requirements:

 

KMS Cases

NPO Cases

Motion with Certificate of Service

Motion with Certificate of Service

Set for Hearing

Set for Hearing

Proposed Order

Proposed Order

 

No objections:

 - prepare order granting motion.

 - after entering order granting motion - issue hardship discharge.

 

Docket Event:

 

[Bankruptcy> Orders/Opinions>Other Orders> Discharging Debtor(s) 12 before plan completion]

 

Disposition method: Hardship Discharge

 

Discharge Forms:
 

  • debtor or both debtors in joint case Form - 3180FH - Ch 12 Hardship Discharge

  • debtor 1 in joint case: Form - 3180FHJ1 - Ch 12 Hardship Disch - Db 1

  • debtor 2 in joint case: Form - 3180FHJ2 - Ch 12 Hardship Disch - Db 2

 

After the trustee files the Chapter 12 final report and account and objection period expires, proceed to close the case.   See Closing Chapter 12