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

In the context of bankruptcy law in Nebraska, discharging a debt and writing off a debt are two distinct processes. Discharging a debt involves eliminating a debtor’s legal responsibility to repay the creditor. When a debt is discharged, the debtor is no longer required to pay it and the creditor can no longer attempt to collect payment from the debtor. This is often achieved through filing for bankruptcy in court. Writing off a debt, on the other hand, is an accounting term that refers to a creditor’s decision to stop trying to collect a debt. When a creditor writes off a debt, they acknowledge that the debt is unlikely to be collected and, as such, removes it from their company’s balance sheet. While creditors can still attempt to collect the debt, in most cases they no longer do so. Ultimately, discharging a debt is a legal process that eliminates the debtor’s obligation to pay the debt while writing off a debt is an accounting process that eliminates the obligation from the creditor’s balance sheet. In most cases, creditors will write off a debt after the debt has been discharged in court.

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

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