Frequently Asked Questions about Discharge Debt Bankruptcy

This article intends to shed some light on the discharge debt bankruptcy and enables you to get a proper insight into its fundamentals. So go on reading the article and get enlightened.

What is a discharge in bankruptcy?

In the simplest of terms, discharge in bankruptcy relieves the debtor from personal liability for specified types of debts. It is a permanent order that prohibits the creditors from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.

What is the timing of discharge?

The timing of the discharge debt bankruptcy solely depends upon the chapter under which the case is filed. If the case is filed according to chapter 7 (liquidation), the court can discharge the case on expiration of the time fixed for filing a complaint objecting to discharge. Moreover, the time fixed for filing a motion to dismiss the case for substantial abuse 60 days following the first date set for the 341 meeting. Generally, it takes about four months after the date the debtor files the petition with the clerk of the bankruptcy court. In individual chapter 11 cases, and in cases under chapter 12 (adjustment of debts of a family farmer or fisherman) and 13 (adjustment of debts of an individual with regular income), the court can grant the discharge soon after the debtor completes all payments under the plan. Since chapter 12 or chapter 13 plans may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing.

How does the debtor get a discharge?

The debtor would automatically receive a discharge debt bankruptcy, provided there is litigation involving objections to the discharge. The Federal Rules of Bankruptcy Procedure has made it mandatory for the clerk of the bankruptcy court to mail a copy of the order of discharge to all creditors, the U.S. trustee, the trustee in the case, and the trustee's attorney. Moreover, the debtor along with his attorney also receives copies of the discharge order. The served notice intends to offer confirmation to creditors that the debts due to them stands discharged and no effort should be made to recover them. In case, the creditors fail to do so, he or she may be a likely candidate of punishment for contempt of the court, which is a serious issue. However, if the clerk did not send the debtor or any creditor a copy of the discharge order, it does not affect the validity of the order granting the discharge.

Discharge in bankruptcy means that the debtor is no longer legally required to pay any debts that are discharged.

Discharge in bankruptcy means that the debtor is no longer legally required to pay any debts that are discharged. Click here and get correct answers about Discharge Debt Bankruptcy.

I love writing a lot and currently working as a Content and Academic Writer. My writing is qualitative, professional and timely which my clients like about me.