What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is a court order that releases a debtor from all debts that arose before filing for bankruptcy relief. It is one of the ultimate goals of filing for bankruptcy and is the final step in a bankruptcy case. The discharge order will be issued only after the debtor has met all of the requirements set forth by the bankruptcy court and will signify the successful completion of a debtor’s bankruptcy case. In the District of Columbia, when a bankruptcy discharge is granted, it means that the debtor is no longer obligated to the creditors who provided him or her credit prior to filing for bankruptcy. It also prevents creditors from taking any action to collect on the discharged debts, such as writing letters or filing lawsuits. The discharge order will also prevent creditors from creating new debts related to the discharged debt. In addition, a bankruptcy discharge may also include other forms of relief, such as the removal of liens, if applicable. A bankruptcy discharge may also provide a “fresh start” in the form of a chance to rebuild credit and the ability to establish new credit, as long as new creditors are willing to extend credit in light of the bankruptcy filing. A discharge in bankruptcy can allow an individual to take control of his or her finances and begin the process of rebuilding credit.

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What is the meaning of a bankruptcy discharge?

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