What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is a legal order that releases a debtor from their personal liability for certain debts. This means that after a bankruptcy is granted, the debtor is no longer liable for those debts and creditors cannot take any action to collect the debt. In Hawaii, the Bankruptcy Code, the U.S. Constitution, and the state constitution all provide for the discharge of debt in certain situations. In general, a discharge of debt means that the debtor no longer has to pay back the debt. For example, when a debtor files for Chapter 7 bankruptcy, the debt is discharged after the court approves the petition. After the court grants the discharge, the debtor must still make payments on debts such as child support or alimony that are not dischargeable debts. The bankruptcy discharge does not mean that the debtor’s credit rating is automatically improved. In most cases, the bankruptcy filing itself will remain on the debtor’s credit report for up to 10 years. Although the debt is no longer collectible, it still has to be reported. The bankruptcy discharge also does not discharge all of the debtor’s debts. Examples of debts that are not discharged include loans taken out from retirement plans, student loans, debts related to fraud, and debts related to criminal activity. In addition, taxes, child support, and alimony are never discharged under bankruptcy law.

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What is the meaning of a bankruptcy discharge?

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