What is a discharge?
The discharge order is issued by the court and permanently prohibits creditors from taking action to collect dischargeable debts against the debtor personally. This does not prevent secured creditors from seizing collateral if payments are not kept up or other creditors from pursuing property of the estate. The following information is intended as a summary only. You are strongly encouraged to consult with an attorney in order to determine the rights and obligations that apply to your individual situation. Some debts are not dischargeable, and others may be found to be non-dischargeable depending on particular circumstances. In a chapter 7 case, the bankruptcy court will order that the debtor be discharged of all dischargeable debts once the time for filing complaints objecting to discharge has expired except in certain situations. For example, a discharge will not be granted if the debtor is not an individual, a complaint objecting to the debtor’s discharge has been filed, a motion to
A discharge is a release of the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay debts that are discharged. Not all debts are discharged and you should contact an attorney to discuss in detail the types of debts than can be discharged. The discharge serves as a permanent order directed to the creditors of the debtor that they are prohibited from taking any form of collection action on discharged debts, including collections actions of communications with the debtor, such as telephone calls, letters, personal contacts as well as legal action in the form of filing suit. Although a debtor is relieved of personal liability for all debts that are discharged, a valid lien (i.e., such as a mortgage or auto lien that is a charge upon specific property to secure payment of a debt) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the prope
If a debt is discharged, you no longer have an obligation to pay the debt, and the creditor may not make any effort to compel you to repay. However, if some other person (such as a relative or friend) also has an obligation to pay, his or her obligation is not discharged. In addition, if you have property that is collateral for a loan, the creditor may still be able to repossess that collateral.
Generally, obtaining a discharge is one of the major reasons why people file for Chapter 13 relief. A Discharge Order is an actual Order of the Bankruptcy Court that, when entered, releases a debtor from the personal obligation to repay the debtor’s discharged debts. The Discharge Order also orders creditors to not attempt to collect on a debt that has been discharged.
A discharge is a Court Order that says you do not have to pay certain of your debts. Creditors cannot force you to pay any debts which have been discharged. However, there are many exceptions. For example, in Chapter 7 a discharge does not excuse payment of most tax debts, child support obligations, alimony, student loans, court-ordered fines and restitution, and debts created by fraud or drunk driving among others. In addition, your discharge may be denied entirely if you conceal property, destroy, falsify, or conceal records or make a false oath. A creditor may still attempt to repossess collateral that secures payment of the debt. Please consult an attorney to find out which debts are dischargeable for your individual situation.
