Section 17. Closing a Bankruptcy Case›5.9.17 Closing a Bankruptcy Case›Note:
Chapter 12 Hardship Discharge
Internal Revenue Manual Part 5. Collecting Process · 2026-10-03 edition · updated 2026-10-04 · United States
Granting the Hardship Discharge. If the court determines circumstances beyond the debtor's control have created a true hardship; such as, a crop failure or an illness, the court may grant a hardship discharge prior to completion of the plan (11 USC 1228(b)(1)).
Minimum Distribution. The court may not grant the hardship discharge unless holders of unsecured claims have received at least as much as they would have received in a Chapter 7 liquidation.
Modification. The court may not grant a discharge if modification of the plan is practicable.
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