What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is an order made by a court that releases the debtor (the person filing for bankruptcy) from their obligation to pay certain types of debts. This means that once the debt has been discharged, the creditor (the person or institution to whom the debt is owed) can no longer take any action to collect the debt from the debtor. This includes calling, sending collection letters, or filing a lawsuit against the debtor. In California, most debts are dischargeable in bankruptcy, including credit card debt, medical bills, personal loans, and certain taxes. Certain types of debts, however, may not be dischargeable, such as student loans, child support, alimony, and certain types of taxes. Once a bankruptcy discharge is granted, the debtor is no longer legally obligated to pay the discharged debt. This does not mean that the debtor does not have to pay the debt, however. The debt may still be paid at the discretion of the debtor, and the creditor may also report the discharged debt to the credit bureaus. In summary, a bankruptcy discharge is a court order that releases the debtor from their obligation to pay certain types of debts. In California, most types of debt are dischargeable in bankruptcy, although certain types of debts, such as student loans and child support may not be. Once a discharge is granted, the debtor is no longer legally obligated to pay the discharged debt, though the debt may still be paid at the discretion of the debtor.

Related FAQs

What do I do with any unexpired leases or contracts when filing for bankruptcy?
How long do I have to wait before I can file for bankruptcy again?
What kind of debt counseling is available before and after filing for bankruptcy?
What are some of the long-term effects of filing for bankruptcy?
How will filing for bankruptcy affect my credit score?
How can I protect co-signers from being affected by my bankruptcy?
Can I keep my home when filing for bankruptcy?
Does filing for bankruptcy stop foreclosure proceedings?
What is the difference between a bankruptcy trustee and a bankruptcy lawyer?
How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

What is the meaning of a bankruptcy discharge?

Related FAQs

Related Blog Posts