Motion for Chapter 13 Hardship Discharge

Rev. 01/26/2024

The below information is regarding a Chapter 13 Hardship Discharge under 11 USC 1328(b).

When a debtor files a motion for a hardship discharge under 11 USC 1328(b) (before completion of the plan), the court will enter an order fixing the time to file a complaint to determine the dischargeability of any debt under Section § 523(a)(6). The order must give no less than 30 days' notice to all creditors. See Fed. R. Bank. P. 2002.

Cases filed before October 17, 2005 a certification regarding the following is not required:

the debtor's status of domestic support obligations (as defined at 11 U.S.C. § 101(14A)); or
statement the debtor is not disqualified from receiving a discharge under 11 U.S.C. § 1328(h).

Cases filed on or after March 10, 2008 before the debtor can receive a discharge the debtor(s) must:

complete an Instructional Course Concerning Financial Management; and
file a certification of completion (Official Form 423) or the course provider notifies the court the debtor completed the course. See Financial Management Course - Ch 13

Effective February 22, 2023, per the 2023-01 Amended Standing Order Adopting Procedures for Obtaining Discharge in Completed Chapter 13 Cases the motion for hardship discharge must include certification in support of the motion.

The certification must:

Include the status of domestic support obligations (as defined at 11 U.S.C. § 101(14A)) and verification that the debtor is not disqualified by the provisions of 11 U.S.C. § 1328(h) from receiving a discharge; and
Conform substantially with the court's local form. (See Local Form MSSB-1328(b)-Cert.)

Requirements:

KMS Cases	JAW Cases
Motion and Certification with Certificate of Service	Motion and Certification with Certificate of Service
Proposed Order	Proposed Order
Set for Hearing	Set for Hearing

Docket Event:

[Bankruptcy > Motions/Applications > Hardship Discharge]

CA Procedures

Missing Documents - Issue Deficiency Notice

Issue a deficiency notice when the debtor fails to:

File a certification regarding (1) the debtor's status of domestic support obligation as defined at U.S.C. § 101(14A) and (2) the debtor is not disqualified by the provisions of 11 U.S.C. § 1328(h) from receiving a discharge (Local Form MSSB-1328(b)-Cert.).
File Official Form 423 Certification of Completion of Postpetition Instructional Course Concerning Personal Financial Management unless the financial course provider filed a notice of completion in the case.
- Docket Event: [Bankruptcy > Court Events > Notice of Deficiency].
- Form: dn015-hardshipdsch13
- For JAW Cases select the box "Entry of an order denying the Debtor's motion for hardship discharge."
- For KMS Cases select the box "Scheduling a show cause hearing to determine why the Motion should not be denied.

If the Debtor...	Then...
Does not cure the deficiency	Notify the Courtroom Deputy
Does cure the deficiency	Set the motion for a hearing

No Missing Documents - Schedule a Hearing

Get a hearing date from the Courtroom Deputy.
Prepare and upload the Order Setting Hearing and Conditionally Setting Time for Filing Complaints to Determine the Dischargeability of Any Debt Under §523(a)(6).

Template Location:

operations > CM_TEMPLATES > Samson_Templates > KMS_Order_Setting_Hardship_Discharge
operations > CM_TEMPLATES > Wilson_Templates > JAW_Order_Setting_Hardship_Discharge
Docket the order and send a copy to all creditors and parties.

Docket Event:

[Bankruptcy > Orders/Opinions > Other Orders > Set Hearing Re: Hardship Discharge]

Note: Even when no response or objection is filed, the Court will hold the hearing.

After the Hearing

Docket and send a copy of the order to the parties on the court's mailing matrix.

Docket Event:

Bankruptcy > Orders/Opinions > Reference an Existing motion/application]

Count Denies the Motion - No further action.

Court Grants the Motion -

Docket hardship discharge order

Docket Event:Bankruptcy > Orders/Opinions > Other Orders > Discharging Debtor(s) 13 before plan completion]

Important When a debtor has six or more aliases:

Consult with a Operations Manager to create a discharge order to include all the aliases;

Docket the discharge order using the generic order event. [Bankruptcy > Orders/Opinions > Other Orders > Order (Generic - Does not relate to motion)]

Enter the discharge date and disposition date and code through [Utilities > Edit Data > Edit Case Data].
Issue a notice to all creditors and parties regarding the 60 days deadline to file a complaint. See Notice Re: Hardship Discharge and Setting Deadline to File a §523(a)(6) Objection Deadline.