QUESTION
Am I eligible for a hardship discharge from chapter 13 because of this natural disaster?
Asked on Aug 31st, 2016 on Bankruptcy - Wisconsin
More details to this question:
I lost everything in the recent flood of 2016. I will need a new car and everything. I have been in chapter 13 since 2013. My lawyer wants me to file chapter 7. I don't want to do that. My lawyer states that if I stay in chapter 13 my payments will increase because my Veteran Disability has increased and it will count as income. My current situation doesn't seem to be taken into consideration.
3 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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1. Your lawyer's advice is reasonable. So also is seeking a hardship discharge. 2. You are paying your lawyer. You can trust his or her advice. 3. A hardship discharge can be denied by the court. Conversion to ch 7 is almost always your right, w/o the need for court approval.
Answered on Sep 26th, 2016 at 11:35 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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It sounds like you may be eligible for a modification of your Chapter 13 plan due to the destruction of your vehicle and property but I don't have enough information to tell if you're eligible for a hardship discharge. Usually, your automobile and homeowners/renters insurance will pay for most items lost in a flood.
Answered on Sep 26th, 2016 at 11:35 AM
A hardship discharge is generally only available when your income goes down. I cannot see why you object to converting to a Chapter 7 instead as there usually is little difference between a Chapter 7 and a hardship discharge. More details would have been helpful.
Answered on Sep 26th, 2016 at 11:35 AM