Riverside Bankruptcy Lawyer – So, what if you’ve decided to take control of your financial future by filing for a Chapter 13 bankruptcy? In Chapter 13, the bankruptcy court sets up payment plans for discharge of your debts. However, many of our bankruptcy clients worry about whether they should file for Chapter 13. They worry about how they will manage the payments if they lose their job, have a health crisis that affects their ability to pay, or other circumstances that could reduce their income and keep them from paying off their debts under the plan.
As Riverside bankruptcy lawyers, we recognize that these are legitimate concerns. While the Court will work with you to set up a payment plan you can afford at the time of filing, sometimes life circumstances change enough that the plan no longer works. In those cases, you can petition the Bankruptcy Court for what is known as a “hardship discharge.” To qualify for a hardship discharge of a Chapter 13 bankruptcy, you must meet the following criteria.
- You must have suffered a change of circumstances that was beyond your control, which now is affecting your ability to continue making your established payments.
- You must have paid at least a comparable amount to what your creditors would have received if you had entered into a Chapter 7 bankruptcy plan.
- You are unable to modify your Chapter 13 bankruptcy plan to a payment you can afford.
This last point is very important. If possible, the court will have you try to modify the payments under your Chapter 13 plan. This is not always possible, and that’s when you need a good Riverside bankruptcy lawyer on your side. Our attorneys at the law practice of Harold D. Thompson have over 30 years of experience in bankruptcy law, and can make sure that you have good representation when your circumstances change. Judges understand that, lately, times have been rough on everyone, and many people in the Riverside area have seen their situation go from bad to worse. We can help you resolve your evolving financial issues by working with you on a hardship discharge.
Further questions on bankruptcy? Download our free book, the California Guide to Bankruptcy, to learn more about your legal rights under bankruptcy law.
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