What is a bankruptcy discharge?
A discharge is the best possible outcome for a debtor filing bankruptcy. Discharge is a legal term meaning that the debtor no longer has to pay certain debts they have incurred prior to filing bankruptcy. A discharge is only possible for certain debts called unsecured debts, meaning debts that are not secured by property owned by the debtor. A discharge is a relief for the debtor provided within the laws of bankruptcy. A fresh start for the debtor is sometimes the only option, and a discharge from the bankruptcy court provides it!How long will this take?
In a Chapter 7 Bankruptcy, a discharge may be granted in as little as three to five months after filing.
Be aware there are debts that are non-dischargeable in a Chapter 7 Bankruptcy. Here are some examples:
- Debt for alimony
- Debt for child support
- Debts not listed by the debtor in the filing
- Fines and penalties owed to the government (such as criminal fines, etc)
- Most student loans
- Certain personal injury judgments
- Certain tax claims, etc.
- Other dischargeable and non-dischargeable debt can be discussed during your FREE CONSULTATION with Fort Lauderdale Bankruptcy Attorney Carmen G. Soto
Once a debt has been discharged by the Bankruptcy Court a creditor can no longer attempt to collect payments on it. The creditor legally cannot harass the debtor for the payments nor attempt to initiate a lawsuit to collect. There are legal consequences for a creditor that attempts to collect a debt that has been deemed discharged by the Bankruptcy Court.