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

The difference between discharging and writing off a debt is important to understand when filing for bankruptcy in Delaware. Discharging a debt means that the debtor’s legal obligation to pay the debt has been eliminated completely. A discharge of debt may be ordered by the bankruptcy court when a debtor is unable to pay their debts. The debts are no longer legally enforceable against the debtor. Writing off a debt is something done by a creditor rather than a court. Creditors write off a debt when they accept that it is unlikely that they will ever get back the money they are owed. This usually occurs when a debtor is unable to pay the debt. Writing off a debt does not eliminate the legal obligation to pay the debt, but it often means that a creditor will not pursue repayment. It is important to note that, while writing off a debt may remove the debt from a debtor’s credit report, it does not discharge the debt from the debtor’s record. It is important to understand the difference between these two terms when filing for bankruptcy in Delaware.

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

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