Paying off bills means different things to different people. So YOUR definition is really irrelevant (sorry if this sounds harsh). If your family had run up credit cards and needed the money from the retirement accounts to pay that off, it is not likely to ring any bells with a financial aid officer. Consumer debt doesn’t generally qualify as hardship. Unexpected medical bills which did not get covered by insurance? Those will qualify-- but there are ZERO guarantees that just because a university agrees to review your aid, that will mean an INCREASE in aid. You seem confused about what the terminology means.
Please, please please- take the time you are devoting to loving Duke and go find three colleges you can afford- today- without a special circumstance review. You will be mad at me right now, and very grateful come April. Worst case, you get accepted to Duke with a huge package and can post here “Blossom you were wrong” which will make me very happy. Best case- you will go to college without putting your family in further financial distress.
Sorry to hear about your mom- very sad.