What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is a court-issued order that releases a debtor from liability for certain debts. This means that, after a bankruptcy discharge, the debtor is no longer obligated to pay the discharged debts. In other words, the lender can no longer take any legal action to collect the debt from the debtor. The types of debts that can be discharged during bankruptcy vary by the type of bankruptcy filed. In Mississippi, debts that are generally discharged in the most common types of bankruptcy are credit card debt, medical bills, personal loans, utility bills, repossessions, and certain tax debts. In some cases, a bankruptcy discharge can be denied or revoked. This can happen if a person deliberately conceals assets or reports false information on their bankruptcy petition. Also, if a debt is determined to have been incurred through fraud, it may not be eligible for discharge. A bankruptcy discharge can provide debtors with a fresh financial start. By discharging certain types of debt, debtors can save money by eliminating the need to pay back the debt. Bankruptcy can also help a debtor create a repayment plan with creditors in order to get current on the debt.

Related FAQs

Can I get a loan after filing for bankruptcy?
Will filing for bankruptcy stop repossession?
Will bankruptcy discharge the entire amount of debt owed?
What are some of the potential pitfalls to filing for bankruptcy?
What type of information will I need to provide to my attorney before filing for bankruptcy?
Are there any special provisions for filing for bankruptcy as a single parent?
How do I know if I qualify for a repayment plan?
What is the difference between secured and unsecured creditors?
What is the process for filing for bankruptcy?
Will filing for bankruptcy stop a lawsuit?

What is the meaning of a bankruptcy discharge?

Related FAQs

Related Blog Posts