Some debtors may find that they are unable to complete the payments required by the confirmed plan for reasons beyond their control. The Code still allows for discharge if certain specific circumstances are met.  Generally speaking, it must be shown that: (1) the debtor's failure to complete plan payments is due to circumstances for which the debtor should not justly be held accountable; (2) the amounts received by unsecured creditors is not less than would have been received under a Chapter 7 liquidation; and (3) modification of the plan is not practicable.  The discharge granted to the debtor prior to completion of payments is narrower than the discharge available after completion of payments.

This filing should be accompanied by the Motion and Proposed Order.  When required by Local Bankruptcy Rule 9013-3, a Certificate of Service must also be filed. 

 

For order format, please see Proposed Orders