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

The terms “discharging” and “writing off” a debt both refer to eliminating debt, but the means by which they are achieved differ. Discharging a debt is a process in which the debt is legally eliminated and forgiven through bankruptcy in Wisconsin. This usually involves filing a bankruptcy petition and completing a process referred to as a “341 hearing,” which is a meeting with the debtor and creditors to resolve any issues. Writing off a debt, on the other hand, is a process in which the creditor voluntarily removes the debt from its books without any payment from the debtor. This usually happens when a debt is uncollectible. The writing off of a debt does not provide legal protection, or discharge, from the debt, and the debtor remains liable for the debt. In summary, discharging a debt in Wisconsin means that the debt is legally eliminated through the bankruptcy process, while writing off a debt is when a creditor voluntarily removes the debt from its books without any payment from the debtor. Discharging a debt legally provides debtors with protection from creditors while writing off a debt does not.

Related FAQs

How do I know if I qualify for a Chapter 7 bankruptcy?
Are there any debts that cannot be discharged in bankruptcy?
Is there anything I can do to rebuild my credit after bankruptcy?
What is the difference between a Chapter 11 and a Chapter 13 bankruptcy?
Are there any assets that I will not be able to keep in bankruptcy?
What is the difference between a bankruptcy trustee and a bankruptcy lawyer?
Are there additional filing fees associated with filing for bankruptcy?
Can I keep certain types of tax debts when filing for bankruptcy?
Does filing for bankruptcy have any effect on other legal proceedings?
Will bankruptcy discharge the entire amount of debt owed?

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

Related FAQs

Related Blog Posts