What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is a court order that releases a debtor from personal liability for certain specified types of debt. It is a type of legal relief from financial obligations that is available to individuals and businesses in Massachusetts who meet the legal requirements of filing for bankruptcy. A bankruptcy discharge does not erase any debt, but it relieves the individual or business of the responsibility to pay the debt, meaning creditors can no longer pursue collection efforts. The discharge makes it illegal for creditors to contact the debtor about the debt, including phone calls, letters, and legal action. In most cases, a bankruptcy discharge eliminates all debt resulting from contracts and money owed related to the bankruptcy filing. This includes credit card debt, medical bills, and other unsecured debt. However, some debt is not discharged in bankruptcy and must still be paid, such as unpaid taxes, spousal support, and student loans. A bankruptcy discharge is an important part of the bankruptcy process, as it allows a debtor to begin rebuilding credit and making a fresh start. It is important for debtors to understand the terms of their discharge and their obligations to creditors after the discharge has been granted.

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What is the meaning of a bankruptcy discharge?

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