What are the different types of discharge of debts?

A discharge of debts is when a creditor releases a debtor from being obligated to pay the debt. In California, there are several types of discharges of debt. The first type of discharge is a full discharge. Here, the debtor pays off the full balance owed to the creditor, and the debt is considered paid in full. The full discharge essentially wipes the debt from the debtor’s record. The second type of discharge is a partial discharge. In this case, the debtor is able to pay off a portion of the debt and the remaining balance is forgiven. This is usually done when the debtor cannot afford to pay the full balance. The third type of discharge is a bankruptcy discharge. This type of discharge applies in cases of bankruptcy. If the debtor has declared bankruptcy, their debts can be discharged, meaning the debtor is no longer obligated to pay the debt. The fourth type of discharge is a debt settlement. In this case, the creditor negotiates with the debtor to reduce the amount of the debt. In exchange, the debtor pays the creditor a smaller amount of money. The creditor then cancels the remaining debt. Finally, there is a discharge of debts due to death. If the debtor dies, the debt is no longer owed. The debtor’s estate is exempt from paying the debt, and the creditors must forgive the remaining balance.

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What are the different types of discharge of debts?

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