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

The main difference between discharging and writing off a debt in West Virginia is the extent to which the debtor is responsible for the debt. Discharging a debt involves eliminating the debtor’s obligation to pay the debt altogether. This happens when an individual files for Chapter 7 bankruptcy, also known as liquidation bankruptcy. The bankruptcy court can discharge eligible debts, such as medical bills, credit card debt, and personal loans. Once a debt is discharged, the debtor is no longer responsible for paying it back. On the other hand, writing off a debt does not eliminate the debtor’s obligation to pay the debt. When a debt is written off, it is reported to credit bureaus as unpaid and as a negative mark on a credit report. This usually occurs when a debt has been delinquent for an extended period of time and the creditor or collector decides to write off the debt for tax purposes. Even though the debt is written off, the debtor is still responsible for paying the debt, although the creditor or collector may no longer actively pursue payment.

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

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