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.

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

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