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

Discharging a debt and writing off a debt are both terms used to describe relieving an individual from their obligation to pay a debt. However, there are some key differences between the two that must be considered when understanding how bankruptcy works in Rhode Island. Discharging a debt means that the individual is completely relieved of any financial obligation and cannot be pursued by the creditors or collection agencies for repayment. In Rhode Island, the Bankruptcy Code allows individuals to discharge certain types of debt, including credit card debt, medical bills, and personal loans. When a debt is discharged, the individual will no longer be responsible for making payments on that debt and the negative effects of the debt will be removed from their credit report. On the other hand, writing off a debt does not provide the same protections as discharging a debt. Writing off a debt means that the creditor has chosen to waive the remaining balance on a debt and cannot pursue the individual for payment. However, the individual is still responsible for repaying the debt at a later date if the creditor chooses to do so. Additionally, the debt will still remain on the individual’s credit report. It is important for individuals to understand the differences between discharging and writing off a debt when considering filing for bankruptcy. Filing for bankruptcy in Rhode Island may be the only way to completely discharge a debt, so it is important to consult with an experienced bankruptcy lawyer to understand all available options.

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

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