A bankruptcy discharge is your official release from legal liability for repayment of your debts that are wiped out in bankruptcy. For most people who file, a bankruptcy discharge is the goal of the entire proceeding.
Not all debts are released by the bankruptcy discharge. The type of bankruptcy has a lot to do with which debts will be discharged. The Chapter 7 bankruptcy discharge is different from the Chapter 13 bankruptcy discharge; knowing your goal is an important part of determining which type of bankruptcy to file.
Once the bankruptcy discharge is awarded by the court, creditors and their agencies may no longer legally try to collect on the discharged debts. The calls, letters, and threats arising from the old debts stop forever. Finally, you can pick up the phone and not have a demanding voice greet you. As long as you doesn’t get into financial trouble again after your discharge is issued, the peace will remain intact.
There are a few myths about how hard it is to get a bankruptcy discharge. As long as the case is simple, it’s usually easy. It does, however, take what may seem like a long time.
There will be a hearing to discuss your case. In a Chapter 13 bankruptcy, you will need to appear at a Hearing on Confirmation to get approval for a personal reorganization.
Remember that the process of bankruptcy can be tricky, but the end result of a discharge is a powerful source of protection for you. Take the time to understand the limitations of the discharge, how it operates, and what it means in a variety of situations. From there, you’ll be able to understand it more clearly.