What is a discharge in bankruptcy?
“Discharge” is an order by the bankruptcy court that releases the debtor from certain debts. When filing under Chapter 7, the debtors is usually discharged within three to six months from the filing of the petition. When filing under Chapter 13, the discharge occurs after the creditors are paid pursuant to the plan.
A discharge is the court’s order stating that you do not have to pay your debts to the creditors that were listed in your bankruptcy documents, so long as the court did not entered a non-dischargeability order. Other debts that are not discharged under the current laws include student loans, child support, alimony/maintenance, government fines or penalties, most taxes and a few others. If a debtor is required to pay child support or alimony/maintenance, then, after all Plan payments are completed, they must file a certification with the Court that all payments are current, otherwise they will not receive a discharge. (1328(a) The effect of a discharge is that debtors are released from personal liability for all dischargeable debts, and all creditors, whose debts are discharged, are prohibited from performing any act to collect such debts from the debtors. This is known as a permanent, federal injunction. In a chapter 13 the discharge is not entered until all your plan payments are made
A discharge is the court’s order stating that you do not have to pay your debts to the creditors that were listed in your bankruptcy documents, so long as the court did not entered a non-dischargeability order. Other debts that are not discharged under the current laws include student loans, child support, alimony/maintenance, government fines or penalties, most taxes and a few others. If a debtor is required to pay child support or alimony/maintenance, then, after all Plan payments are completed, they must file a certification with the Court that all payments are current, otherwise they will not receive a discharge. The effect of a discharge is that debtors are released from personal liability for all dischargeable debts, and all creditors, whose debts are discharged, are prohibited from performing any act to collect such debts from the debtors. This is known as a permanent, federal injunction. In a chapter 13 the discharge is not entered until all your plan payments are made and the
A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts. Although a debtor is not personally liable for discharged debts, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the property secured by the lien. When does the discharge occur? The timing of the discharge varies, depending on the chapter under which the case is filed. In a chapter 7 (liquidation) case, for example, the court usually
Filing Chapter 7 bankruptcy is typically done in order to wipe out debts. Debts are able to be wiped out when they are “discharged” which means the debtor is no longer legally required to pay any of the debt. Once a debt has been discharged, no collected action can be taken by the creditor including calls, letters and personal contact. If a debt is not discharged, the debtor is still responsible for the debt and the creditor can enforce payment. In chapter 7 bankruptcy a debtor can also agree to reaffirm a debt which means they intend to continue making payments in order to keep the property that the debt is attached to, such as a car or home. If a debt has been reaffirmed and the debtor begins missing payments, the creditor can enforce the debt beyond the bankruptcy. When Does the Discharge Occur? In a chapter 7 bankruptcy the debts are usually discharged once the time for a creditor to file a complaint has passed which is typically 60 days after the 341 meeting. Total time is about 4
