A discharge in bankruptcy in simple terms is the termination of the bankruptcy process. When this occurs will depend on the type of bankruptcy and can be as short as four months for a Chapter 7 petition and as long as 4 or more years for other Chapters. Technically speaking, the debtor should be free of all debts once the discharge is granted.

For a Chapter 7 petition, the debtor is often released from all debts. This means they can restart their lives virtually debt free.  I say virtually debt free, there are some debts (such as fines and taxes) that are not discharged through the bankruptcy process.  The debtor will still be responsible for these debts and the ramification for non-payment.

The bankruptcy process provides protection for debtors once their discharge has been granted. If a creditor continues to pursue a debtor for an outstanding debt, the debtor can file a motion for the matter to be re-opened. If the debt in question has been discharged, the creditor could be found to be in violation of the discharge. In legal terms, a discharge is a permanent statutory injunction prohibiting creditors from taking any action against a debtor.

Debtors can voluntarily repay discharged debts if they so wish. There cannot, however, be any attempts made to force this voluntary payment – it must be a voluntary act. Why would you make a voluntary payment? There are times when good will may suggest it prudent to make such as payment. Family members and close friends are often the recipient of these payments.

The discharge process is, ordinarily, an automatic process. Once all terms of any agreements have been met and there are no objections raised from creditors, a discharge is granted. This is normally the conclusion of the process and the courts dealing with the debtor.

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  3. What Is A Bankruptcy Discharge And How Long Does It Take?
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