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

Discharging a debt means that, after a bankruptcy case is completed, the debtor is no longer held responsible for any of the debt. This means the debt is gone and the debtor is no longer obligated to make payments. Writing off a debt is when a creditor or collection agency decides to take a loss on a debt. This means the creditor or collection agency agrees to take less money than what is owed from the debtor, as a way of settling the debt. In Indiana, discharging a debt is a common practice with most forms of bankruptcy, except for student loan debt. When you file for bankruptcy, the court will consider the type of debt you have and then order the debt to be discharged or written-off depending upon the type of debt you have. If your debt is discharged, the debt will be completely eliminated. This will allow you to start fresh and begin rebuilding your financial situation. On the other hand, when a debt is written off, the creditor or collection agency will agree to take less money than what is owed. This means that you still owe money, but the creditor or collection agency has agreed to accept a smaller amount. In short, the main difference between discharging and writing off a debt is that when a debt is discharged, you are no longer obligated to make payments and the debt is completely eliminated. When a debt is written-off, the creditor or collection agency agrees to accept a smaller amount than what is owed. This means that the debt is not eliminated, but the creditor or collection agency has agreed to take less money than what is owed.

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

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