What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is a legal order from the court that releases the debtor from repayment obligations for most debts. This means that the debtor no longer has to pay back the debts that have been discharged. This does not mean, however, that the debts go away; instead, the debtor is no longer legally obligated to repay them. In West Virginia, when a debtor is granted a bankruptcy discharge, the law states that the creditor must stop contacting the debtor to collect payment, or taking any other action to collect on the debt. This includes harassing phone calls or letters, wage garnishments, legal actions, and repossessions. A discharge also prevents any creditor from creating a lien on the debtor’s property. Generally, the bankruptcy court grants a discharge for most types of debt, such as credit card bills, medical bills, and unsecured personal loans. However, some types of debt may not be discharged. These include certain taxes, student loans, alimony and child support, and most types of fraud. Once a debtor has been granted a bankruptcy discharge, it usually takes a few months for the court to finalize the documents. After the process is complete, the debtor will receive a written certificate showing that their debts have been discharged. This certificate is an important document that the debtor should keep for any future reference.

Related FAQs

Can I get a loan after filing for bankruptcy?
Can I keep certain types of property when filing for bankruptcy?
What do I do with any unexpired leases or contracts when filing for bankruptcy?
Which debts cannot be discharged in bankruptcy?
What will happen to my creditors if I file for bankruptcy?
What will happen to my co-signers if I file for bankruptcy?
Does filing for bankruptcy have any effect on other legal proceedings?
Can I still obtain a loan after filing for bankruptcy?
Can I keep my car when filing for bankruptcy?
Are there any exceptions to the automatic stay issued when filing for bankruptcy?

What is the meaning of a bankruptcy discharge?

Related FAQs

Related Blog Posts