Although a Chapter 13 bankruptcy debtor generally receives a discharge only after completing all payments required by the court-approved (confirmed) repayment plan, there are some limited circumstances under which the debtor may request the court to grant a hardship discharge even though the debtor has failed to complete plan payments. Such a discharge is available only to a debtor whose failure to complete plan payments is due to circumstances beyond the debtor's control.

The scope of a Chapter 13 bankruptcy hardship discharge is similar to that in a Chapter 7 bankruptcy case with regard to the types of debts that are excepted from the discharge. A hardship discharge is also available in Chapter 12 bankruptcy if the failure to complete plan payments is due to circumstances for which the debtor should not justly be held accountable.

In Missouri, as in other states, Chapter 13 bankruptcy allows debtors to reorganize their debts and pay them off over a three to five-year period. If a debtor is unable to complete the payment plan due to circumstances beyond their control, they may apply for a hardship discharge. The conditions for a hardship discharge include: the debtor's inability to continue the repayment plan due to unforeseen circumstances, the unsecured creditors have already received at least as much as they would have in a Chapter 7 liquidation case, and modification of the plan is not feasible. If granted, the hardship discharge will relieve the debtor of most debts, similar to a Chapter 7 discharge, but certain debts such as alimony, child support, certain taxes, and student loans typically cannot be discharged. Chapter 12, designed for family farmers or fishermen, also allows for a hardship discharge under similar conditions. It's important for debtors to consult with an attorney to understand the specific requirements and process for obtaining a hardship discharge in Missouri.