What is the difference between discharging and writing off a debt?

The difference between discharging and writing off a debt in California is significant. Discharging a debt means the debt is completely eliminated, forgiven, and the debtor no longer owes the creditor anything. The debtor is excused from further payments to the creditor, and the debt is wiped clean from the debtor’s credit report. Writing off a debt, on the other hand, does not eliminate the debt for the debtor. Writing off a debt means that the creditor has accepted that the debtor does not have the means to pay the debt, and so the creditor may no longer seek collection of the debt. The debt still remains on the debtor’s credit report but the creditor generally stops contacting the debtor for repayment or legal action. Writing off a debt is usually done through bankruptcy, where the court allows the debtor to discharge their debts or, if they do not qualify, to write off the debt. Discharging a debt is the better of the two options, since it means the debtor is free of the debt and the creditor is no longer able to pursue collection.

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What is the difference between discharging and writing off a debt?

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