What is a bankruptcy discharge?
Bankruptcy discharge papers describe the court order that states the debts of the debtor have been forgiven. The bankruptcy court sends them out toward the end of the case. There may be several reasons why bankruptcy discharge paperwork may be needed. One of the more important ones is that the discharge order is a document that officially releases a debtor’s liability for all the qualifying debts listed within his or her bankruptcy petition. Qualified debt may include items such as credit card and utility bill balances, medical debt, and personal loans.
When does the bankruptcy discharge occur?
Filing for bankruptcy is a permanent removal—for the time being—from your debts, but it’s important to keep in mind that it impacts more than just your creditors. The bankruptcy discharge removes your obligation to pay claims (debts) that are discharged. Typically, an “automatic discharge” occurs 18 months after you file for bankruptcy. When does the actual discharge occur? This depends on whether your bankruptcy was Chapter 7 or Chapter 13.
How do you get a discharge?
Are all of the debtor’s debts discharged or only some?
In reality, all of the debts you still owe after Chapter 7 bankruptcy are discharged. What that means is that the creditors can no longer legally try to collect from you or your assets. This means that credit card companies can no longer attempt to collect on a balance, and you no longer owe anything to the IRS. However, the creditors are not supposed to contact you at all about that debt. They are supposed to be completely silent.
Can creditors object to the discharge?
Not all debts can be discharged in a bankruptcy, and credit card creditors can use that to their advantage.. When a debtor files for bankruptcy, the assumption is that his or her creditors cannot collect money owed to them. Creditors do have standing to object to the discharge of their debt, meaning the debtor could be forced to repay the debt if it is discharged.
Can debtors receive a second discharge later on?
If you need a second discharge, it’s unlikely that you could even get one. Chapter 7 bankruptcy is a legal procedure that wipes away all of your debts. Then the federal government allows you to receive a discharge of your debts from the bankruptcy court. However, bankruptcy law specifies that you can only receive one discharge in a 7 year period.
Can a bankruptcy discharge be revoked?
If you’ve ever gone through a bankruptcy filing, you know the process can be frustrating. Long-term debt, or even past medical bills that stretch out for years, can be crippling. And sometimes, debt is insurmountable—especially when those bills can’t be paid off with your income. At the end of a bankruptcy, most debtors are relieved to have their debts cleared. Many don’t realize that the process doesn’t stop here, and that a debt can potentially be reinstated by the creditors.
Can debtors pay a discharged debt after the bankruptcy?
After filing for bankruptcy, many people ask “Can I Keep My Debts After Filing for Bankruptcy”? The short answer is yes, you can keep certain debts after they discharge. However, there are some debts you cannot keep, and, in some circumstances, you may have to pay those debts after filing. The discharging of your debts in bankruptcy means that if you are discharged, you do not have to repay the debts you assets are turned over to the bankruptcy court, to be disposed of as the court sees fit.
What happens when a creditor attempts to collect a discharged debt after bankruptcy?
When a debtor receives a discharge of debts in a bankruptcy case, creditors must abide by the bankruptcy discharge injunction. A creditor is prohibited from attempting to collect on a discharged debt. In 11 U.S.C. § 524, the Bankruptcy Code states that if a discharge is granted in a bankruptcy case, “the debtor shall be discharged of all debts that arose before the commencement of the case under this title.”
Can employers terminate employment because a person because of debt or failing to pay a discharged debt?
If an employer terminates a worker solely because the person is a debtor or failed to pay a discharged debt, then the employer is violating the debtor’s Fourteenth Amendment right to equal protection of the laws.
How can you get a copy of your bankruptcy discharge papers?
When a debtor receives a bankruptcy discharge, it means that all of your debts, both secured and unsecured claims, are discharged. Creditors are not allowed to contact you and attempt to collect any discharged debts. The discharge papers are sent automatically to the debtor’s address on file with the bankruptcy court; however, if the address on file is no longer valid, the debtor must contact the court and request a copy.
In conclusion, bankruptcy discharge papers are the order the bankruptcy court sends out that releases the debtor’s liability for the debts covered in the bankruptcy petition. Discharge letters are sent near the end of the bankruptcy, expunging the debt listed in bankruptcy.