Section 1328 -- Chapter 13 Discharge

Dedicated deep dive into the Chapter 13 discharge statute

Three Requirements

(1) Failure to complete is due to circumstances beyond your control -- job loss, disability, death of spouse, medical emergency.

(2) Unsecured creditors received at least what they would have gotten in a Chapter 7 liquidation (best interest test).

(3) Modification of the plan is not practicable -- you have tried or it would not solve the problem.

Key Difference from Full Discharge

The hardship discharge does NOT include the Chapter 13 superdischarge benefits. Debts under 523(a)(2) (fraud), (4) (fiduciary fraud), and (6) (willful injury) survive a hardship discharge, just as they would in Chapter 7.

This means the hardship discharge is essentially the same scope as a Chapter 7 discharge, but obtained through Chapter 13.

Learn more about hardship discharge

Hardship Discharge Guide

Related Resources

Discharge Bars -- Time limits between bankruptcy discharges by chapter

Chapter 13 Plans -- How Chapter 13 repayment plans work and get confirmed

Hardship Discharge -- Section 1328(b) discharge when you cannot complete your plan

Federal Rules Committee

This research supports Suggestion 26-BK-3 to the Advisory Committee on Bankruptcy Rules

Proposing automated Section 1328(f) discharge bar screening in federal bankruptcy courts