If you have sufficient assets under your name, you might not be eligible to file for bankruptcy under chapter 7. In which case, you'll need to come up with an affordable repayment plan under chapter 13. The repayment plan should be paid off within 3 to 5 years, and the terms of the plan are rather strict. In the event that your financial circumstances change, making payments might be difficult. A simple solution is to file for a hardship discharge, which is difficult to successfully do. To improve your chances, include these 3 types of supporting evidence with your request.
Sufficient Evidence to Prove that You Can't Repay the Debt Due to Uncontrollable Circumstances
In order for the court to grant you some leniency, you must be able to prove that your circumstances are more than a temporary loss of employment or a temporary illness. You must be able to prove that you can't repay your debt due to circumstances that are beyond your control and due to issues that you are not responsible for causing. For example, you might have a case if there was an accidental fire that burned your house down and injured you permanently. Still, you're going to have to make sure that you have sufficient evidence to back up your claims. This might include police reports and medical reports.
Financial Reports Detailing the Amount of Debt You've Already Paid
For the court to even consider granting your request for a hardship discharge, you must also be able to prove that your creditors have all received, at the minimum, what they would have received under chapter 7. Don't make it difficult for the courts to make a decision. Have a bankruptcy trustee or lawyer crunch the numbers for you in a report that compares the two situations side by side. This will give you a good idea as to whether you have made sufficient payments.
Convincing Arguments and Statements Regarding Why Modifying Your Plan Is Impractical
The trickiest task is to make convincing arguments in court as to why it is more practical for the court to grant you a hardship discharge than to ask you to modify your repayment plan. Don't leave this up to spontaneity. Rehearse what you're going to say with a bankruptcy lawyer and even consider submitting a written statement just in case.
Build a strong case before you file a motion for a hardship discharge. You only get one shot at it, so make sure that you are well prepared, and know exactly what you need to do and say during the hearing to improve your chances. Your bankruptcy lawyer can walk you through the procedure and help you determine what your best course of action may be. Contact a firm like Reppe Law Office to learn more.