What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is the legal declaration by the court that a person’s debts have been eliminated. When a bankruptcy is discharged, the person that filed for bankruptcy is no longer responsible for the debt. In Maryland, when a bankruptcy case is processed, the debtor is eligible for a discharge after all requirements have been meet. The discharge process is the final step for a debtor in filing for bankruptcy. It is the point at which the debtor is free from all legal obligations of paying the debt. Once the court has discharged the debt, creditors cannot take any action against the individual for those debts. Creditors also cannot garnish wages, charge late fees, or contact the debtor in any way about the discharged debt. In essence, a bankruptcy discharge is a fresh start for the debtor by relieving them from the burden of unpaid debts. However, the debtor is still responsible for debts that were not discharged, such as certain taxes, student loans, and spousal and child support. Additionally, the bankruptcy will stay on a person’s credit report for up to ten years. It is important for Maryland residents to understand the consequences of a bankruptcy discharge. Understanding the process and the full implications can help them make an informed decision about whether to declare bankruptcy.

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What is the meaning of a bankruptcy discharge?

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