What is a discharge in bankruptcy?

A discharge in bankruptcy is a court-ordered determination that legally eliminates a debtor’s obligation to pay a debt. In North Carolina, such a discharge may be granted by filing for bankruptcy in either chapter 7 or chapter 13 of the Bankruptcy Code. Generally, when a person files for bankruptcy and the court grants a discharge, the debts of the debtor are erased from their financial record. In order to receive a discharge, debtors must go through the bankruptcy process and prove they meet the requirements. Debtors must show that all of their financial information has been provided to the court, including income, assets, and the amount of debt owed. The Court will then evaluate the financial information as well as the debtor’s history of repayment. Once the Court is satisfied, the debtor will receive a discharge from the debt. Once a debtor has been granted a discharge, the discharged debt is no longer enforceable, and the debtor is not liable for payment. The law also prevents creditors from trying to collect on the discharged debt, including contact by phone or mail. A debtor is still responsible for debts not discharged, such as student loans, child support, and tax debt.

Related FAQs

What is a claim for alimony?
What is an assignment for benefit of creditors?
What are the rights of creditors?
What is a reaffirmation agreement?
What is a discharge injunction?
What is an unsecured creditor?
What is a turnover order?
What is a levy?
What is an automatic stay?
What is the meaning of “unsecured debt”?

What is a discharge in bankruptcy?

Related FAQs

Related Blog Posts