• Debtors may apply for a hardship discharge with the bankruptcy court.US Supreme Court image by dwight9592 from Fotolia.com
  
  Individuals overwhelmed by debt may have more options that they thought, particularly if they file a Chapter 13 bankruptcy. While The Motley Fool urges debtors to consider any bankruptcy a final option after all other strategies have failed, Chapter 13 gives debtors the chance to repay their debt instead of simply liquidating it, as would be the case in a Chapter 7 filing. It also allows debtors to file for a hardship discharge if repayment becomes impossible, then permits immediate re-filing to resume the repayments as soon as possible.
  
  

Filing Options

• In most cases, individuals with less than $360,475 in unsecured debt and $1,081,400 in secured debt can opt to file for Chapter 13 bankruptcy, according to United States Courts. Debtors who fail to undergo credit counseling or who received a dismissed petition less than 180 days before filing do not have the option. Some debtors choose to file for Chapter 13 when they cannot file for Chapter 7. For instance, debtors who have recently completed a Chapter 7 bankruptcy and face further financial challenges have the option of filing for Chapter 13 bankruptcy upon discharge.
  
  

Repayment Options

• People who cannot meet the payments they agreed to under the terms of their Chapter 13 bankruptcy have a couple of different options for dealing with the situation. A hardship discharge cancels the debtor’s remaining repayment burden except for certain non-dischargeable items such as unpaid child support or back taxes, according to the Bankruptcy Law Network. The debtor may also choose to turn the issue over to the court, which will then convert the Chapter 13 to a Chapter 7 bankruptcy case.
  
  

Re-filing Options

• According to the Bankruptcy Law Network, debtors who have received approval for a hardship discharge have the option of filing for another Chapter 13 bankruptcy as soon as the discharge has taken effect. This option gives Chapter 13 a distinct advantage over chapter 7 bankruptcies in that a person facing new and devastating setbacks does not have to endure a seven-year waiting period to re-file as Chapter 7 applicants must.
  
  

Conversion Options

• As an alternative to filing for a hardship discharge, debtors who fall below certain income limits have the option of converting an incomplete Chapter 13 bankruptcy to a Chapter 7 bankruptcy in an attempt to liquidate the remaining debt, according to Bankrate. A Chapter 7 bankruptcy, however, will require a new trustee meeting as well as amended schedules while also imposing a waiting period before the debtor can re-file.
  
  

Dismissal Options

• According to the United States Courts web site, the bankruptcy court has the option of dismissing a petition for Chapter 13 bankruptcy if the debtor has not met the eligibility requirements. Creditors also have the right to contest a Chapter 13 petition or subject the petitioner to additional scrutiny in a formal hearing. If a court decides to approve a hardship discharge for a debtor, the discharge essentially dismisses any remaining unpaid debts that a Chapter 7 liquidation would discharge.