What is a discharge in bankruptcy?

A bankruptcy discharge essentially means that you are no longer legally required to pay any of your debts that have been discharged. The discharge is a permanent court order that prohibits the creditors from trying to collect on discharged debts through legal action, telephone calls, letters, etc. The discharge of debt is usually the entire reason while people file for bankruptcy!

It is important to note that not all debts are discharged. Section 523(a) of the Code specifically lists various categories of debts that are not dischargeable—you still have to repay those debts after bankruptcy. Examples of generally nondischargeable debts are child support, alimony, certain tax debts, and student loans.

It is also important to note that the court can revoke a discharge under certain circumstances, for example if the trustee or creditor alleges that the discharge was obtained fraudulently. Because of this, it is important to hire a bankruptcy attorney to make sure your bankruptcy papers are accurate and to avoid all possible issues.

Categories: Chapter 13, Chapter 7