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

Discharging a debt means that an individual is no longer responsible for paying it. When a person discharges a debt, the creditor legally writes off the debt and the individual is no longer legally obligated to pay it. A discharge is typically granted by a court after a person has filed for bankruptcy. Writing off a debt, on the other hand, is when a creditor decides to forgive a debt and not pursue payment. This is usually done when it is determined that the debt is unlikely to be paid or will be too much of a hassle to collect. It is often done if the debt is too old, or if the debtor has passed away. In Florida, writing off a debt must be done in accordance with other state and federal laws. For example, unsecured creditors may not pursue debt collection for more than five years after the last payment was made. In conclusion, the main difference between discharging and writing off a debt is that discharging a debt is done through a court order, while writing off a debt is done voluntarily by the creditor. Discharging a debt eliminates the legal obligation to pay the debt, while writing off a debt simply forgives the debt and the creditor will not pursue payment. In both cases, the individual no longer has to pay the debt.

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

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