How is a bankruptcy discharge determined?

A bankruptcy discharge is a court order that releases a debtor from their personal liability for certain types of debts. This discharge prohibits creditors from taking any collections activities, including lawsuits and wage garnishments. In Washington, the bankruptcy discharge is determined largely by the type of bankruptcy filed, as well as the type of debt. Generally, Chapter 7 bankruptcy will discharge most unsecured debts, such as credit card debt and medical bills, while Chapter 13 bankruptcy will discharge some secured debts, such as a home mortgage or car loan. Additionally, certain types of debts may not be dischargeable, such as child support payments, alimony, certain student loan debt, and tax debt. The court will decide which debts are discharged and which are not. The bankruptcy also determines the length of the discharge period. Generally, for Chapter 7 bankruptcy, the discharge period lasts for several months, while Chapter 13 bankruptcy discharges typically last for three to five years. During this period, creditors will not be able to take any collection activities against the debtor. It is important to note that bankruptcy discharges do not erase the debts entirely. Instead, they allow debtors to start fresh by eliminating the personal responsibility for the debt. While the debt may still appear on a credit report, it should be reported as discharged in bankruptcy.

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