Early Hardship Discharges and conversion to a Chapter 7 Bankruptcy is available if someone cannot complete the Chapter 13 plan.  If a person cannot repay a Chapter 13 bankruptcy then they may obtain an early discharge after repaying a period of years and a showing that they made a good faith attempt to repay.  Hardship or early discharges make Chapter 13 a better choice for those in poor health than Debt management. 

Other Debtors that cannot complete the plan may convert to a Chapter 7 bankruptcy, but new schedules must be provided.  Since Bankruptcy attorneys make more on a Chapter 13, some persons may be placed into a Chapter 7 although they cannot afford Chapter 13 repayment and may need to convert or obtain a hardship discharge.       

      The Covington Bankruptcy Manual and Powerpoints discuss hardship and early discharge for Chapter 13.  Download your free copy.