What is a discharge of debts?

A discharge of debts is a legal action that relieves a debtor from the responsibility to pay certain debts. These debts are usually wiped out without payment, though in some cases the debtor may be asked to make a partial payment. In Louisiana, discharges of debts are governed by state debtor and creditor laws. When a debtor applies for a discharge of debts, the court will review the application and determine whether the debtor qualifies. If the debtor meets the legal criteria for a discharge of debts in Louisiana, the court will issue an order of discharge and the debt will be eliminated. This means that the creditor cannot take any steps to collect the debt from the debtor, including filing a lawsuit or garnishing wages. It’s important to note that all debts are not dischargeable. For example, debts related to child support, student loans, taxes, and certain types of damages are not eligible for a discharge. Also, some types of debt, like mortgages, can only be discharged if a debtor is willing to surrender the property. Another important thing to keep in mind is that a discharge of debts does not necessarily mean that the creditor will not be able to collect from the debtor. In some cases, creditors can still pursue collection efforts if the debtor receives assets or money from third parties or if the debt discharge itself is canceled. Overall, a discharge of debts in Louisiana is a powerful legal tool that can provide relief to debtors in limited circumstances. It’s important to understand the eligibility requirements and potential limitations of a discharge of debts so that you can make an informed decision.

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