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

Discharging a debt refers to being relieved of the legal obligation to pay the debt. When a debt is discharged, it means that the debtor (the person who owes the money) no longer has any responsibility to pay it back. This is usually done through a bankruptcy proceeding, where the court decides that the debt can no longer be collected from the debtor. Writing off a debt is a different process from discharging a debt. When a creditor chooses to write off a debt, it means that the creditor has accepted that the debt will not be paid and has removed the debt from their balance sheet. Writing off a debt does not, however, mean that the debt has been discharged. The debtor is still legally responsible for the debt and can be pursued by the creditor for payment. In Virginia, a person may be able to have a debt written off if they sign a debt settlement agreement with the creditor. In this agreement, the creditor agrees to accept a lower amount of payment than the full amount of the debt.

Related FAQs

Which debts cannot be discharged in bankruptcy?
Is it possible to have a bankruptcy case dismissed?
What are the restrictions for filing for bankruptcy?
What are some of the long-term effects of filing for bankruptcy?
Are there any limits to my spending during the bankruptcy process?
What is bankruptcy?
How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?
Are there any sites where I can get reliable information about bankruptcy law?
Can I keep certain types of tax debts when filing for bankruptcy?
What is the difference between a bankruptcy trustee and a bankruptcy lawyer?

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

Related FAQs

Related Blog Posts