How is a bankruptcy discharge determined?

In Louisiana, the bankruptcy process is governed by the federal Bankruptcy Code, which is the same throughout the country. A bankruptcy discharge is a court order that releases the debtor from personal liability for certain debts known as dischargeable debts. The debt is still legally owed, but the discharge prevents the creditor from taking any action against the debtor. In order to be eligible for a discharge, a debtor has to complete a credit counseling course and then file a petition for bankruptcy with the bankruptcy court. The court will then hold a meeting of creditors, during which the creditors are able to meet with the debtor and the court to discuss the bankruptcy case. After the creditors’ meeting, the court will determine whether or not the debtor can be discharged from their debts. If the court determines that the debtor is eligible for a discharge, the court will issue an order of discharge. The discharge will state which specific debts the debtor is being released from. Generally, most non-priority unsecured debts such as credit card debt, medical bills, and personal loans can be discharged. Some debts, such as student loans, taxes, and child support debts, are not dischargeable. Once the discharge order is issued, the debtor is no longer liable for the dischargeable debts included in the order. The creditors are also prohibited from attempting to collect on those debts. The discharge order can also be seen as a fresh start for the debtor, allowing them to begin rebuilding their credit and finances.

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