Bankruptcy Discharge

A discharge releases the debtor from all personal liability for “dischargeable debts” as defined in the bankruptcy code. It also permanently prohibits creditors from taking any collection activity to recover balances still open after liquidation distribution. No debts are “erased” until the debtor is discharged. If the bankruptcy is a Chapter 13, some debts cannot be discharged. Longer-term secured debts (home mortgage, auto loan, etc.), alimony, child support, taxes, and government funded or guaranteed student loans are not dischargeable. A discharge may be received in six months or less in a Chapter 7 bankruptcy. A Chapter 13 bankruptcy discharge is much more complex since the process takes three to five years to complete.