What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is a court order that relieves you of your legal obligation to pay most debts. This means that you are no longer liable for any debts that were discharged, and creditors cannot take action to collect those debts. In Virginia, bankruptcy is administered under the state’s version of the federal bankruptcy code. Under this code, individuals who wish to file for bankruptcy must complete a petition and provide the court with information about their income, debts, and other assets. Once the court has reviewed the information and approved the filing, the individual is officially considered bankrupt. At this point, the court will issue an order of discharge, which relieves the bankrupt individual from responsibility for repaying their debts. This order is binding on both the individual and the creditors, meaning the creditors cannot take any action to collect the money owed. A discharge does not mean that all debts are forgiven, though; there are some exceptions to the discharge, such as debts for money obtained by fraud, unpaid child support, alimony, and certain student loans. In addition, certain taxes may not be discharged. Ultimately, a bankruptcy discharge means that most of your debts are gone and you are no longer legally liable for them. However, it is important to remember that not all debts are discharged and you may still be responsible for some of them.

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What is the meaning of a bankruptcy discharge?

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