What is a bankruptcy discharge under Chapter 7 of the U.S. Bankruptcy Code?
A discharge is a court order releasing a debtor from his or her dischargeable debts and ordering the creditors not to attempt to collect them from the debtor. The debtor is released from any obligation to pay the debt. What is a bankruptcy estate? When a person files for a Chapter 7 or a Chapter 13 bankruptcy petition, a Bankruptcy Court trustee takes possession of all of the assets of the debtor. Some of the assets or property of the debtor may be exempt, that is, protected by law from claims of creditors. Exemptions typically include things such as unpaid wages, home equity, household furniture and personal effects. A bankruptcy attorney can inform you about your available exemptions. The trustee will usually convert nonexempt property that is turned over to the bankruptcy estate into cash which is then used to pay fees and expenses of trustee, to pay the claims of priority creditors, and if there is anything left, to pay the claims of unsecured creditors. Who is eligible for a bankr
Related Questions
- I received a discharge in a Chapter 7 Bankruptcy, but some debts that could not be discharged remain. Can filing a Chapter 13 help me with these debts?
- How long after filing Chapter 7 bankruptcy and going to court does it take to discharge?
- Does borrowing to discharge a bankruptcy fall under the Consumer Credit Code?
