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

Discharging a debt and writing off a debt are two very different things when it comes to bankruptcy law in Mississippi. Discharging a debt is when all or most of a debtor’s unsecured debt is eliminated, or forgiven, through a provision in the federal bankruptcy code. This means that the debtor no longer owes the discharged debt, and the creditor is prohibited from attempting to collect on the debt. Writing off a debt is when a creditor removes a debt from its accounts because it does not expect to collect the money from the debtor. This balance is removed from the books, and is reported as an expense in the income statement. Writing off a debt does not mean that the debt no longer exists, as the creditor can still attempt to collect on the debt. In Mississippi, when a debtor’s debt is discharged in bankruptcy, the creditor cannot attempt to collect the debt. However, when a creditor writes off a debt, the debt still exists, but the creditor has given up hope of receiving payment. Consequently, the creditor may still attempt to collect on the debt even after it has been written off.

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

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