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

Discharging and writing off a debt are two different concepts under Hawaii bankruptcy law. Discharging a debt is when the debtor is relieved from their legal obligation to pay the debt. This is not the same as erasing the debt or deleting it from a person’s record. Rather, the debt still exists, but the person no longer has legal responsibility to pay it. Writing off a debt is when a creditor believes the debt will not be able to be collected. The creditor will take the debt and “write it off” from their records. This does not mean that the debt is gone, however. The debt still exists and the creditor can still attempt to collect it. It does mean, however, that the creditor will no longer actively pursue the debt and remove it from their records. So, in summary, the difference between discharging and writing off a debt is that discharge releases the debtor from their legal obligation to pay, while writing off a debt does not release the debtor but is instead an acknowledgement from the creditor that the debt may not be collectible.

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

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