Generally, a hardship discharge is available only to a debtor whose failure to complete plan payments is due to circumstances beyond the debtor's control and through
no fault of the debtor.
These exceptions could be broadly categorized as (1) debts owed to the government or subject to a court order, such as certain tax debts or child support obligations; and (2) debts incurred through
some fault of the debtor, such as those arising from civil judgments for fraud or other injury.
Not exact matches
If you choose not to follow the Protocol, you issue proceedings and either your
debtor is familiar with the Protocol or instructs solicitors who are, then the following sanctions can be imposed by the court: - • An order staying the proceedings which also requires compliance with the Protocol; • An order that if you have not complied you pay the costs
of the proceedings or part
of the costs
of the other side even if you obtain judgment in your favour; • An order that those costs are paid on a more stringent basis known as an indemnity basis; • An order depriving the party who is at
fault of any entitlement to interest or alternatively awarding interest at a reduced rate; • Depending on who is at
fault the court can also order payment
of a higher interest rate
of up to 10 % above base rate.
But, other than force majeure scenarios or for the
fault of the creditor, the
debtor must achieve the intended result, regardless
of the amount
of effort required.
Obligations
of result, to the contrary and as their name rightfully suggests, require a
debtor to actually achieve the bargained for result except only where the
debtor can rightfully invoke a force majeure or the creditor's
fault to be excused.