The bankruptcy discharge is an order of the Bankruptcy Court wiping which legally eliminates your debts

By Order of the Bankruptcy Court, the Discharge Legally Eliminates Your Debts

A discharge in bankruptcy “wipes the slate clean” by legally relieving the debtor off all obligation to pay certain debts. Remember that if you wish to retain property like a car or home, payments must be made after bankruptcy. The bankruptcy discharge is most effective at eliminating credit card debt, medical bills and old tax obligations. A discharge, however, is not available to all bankruptcy filers. A discharge is available to a debtor who has not received a Chapter 7 discharge within the past eight years. If a debtor has received a Chapter 12 or Chapter 13 discharge, they must wait six years before seeking a Chapter 7 discharge. However, the availability of a discharge depends on whether the debt is deemed dischargeable. Bankruptcy law excludes certain types of debts as “non-dischargeable” for public policy reasons. Debts such as recent back taxes taxes, debts obtained by fraud, debts incurred while driving drunk, domestic support obligations including property settlements and student loans are nondischargeable. See 11 USC 523 for a complete list.

Discharges are granted approximately sixty days after the meeting of creditors unless action is taken by a creditor or the Trustee. The most common grounds for denying or delaying a discharge include: a complaint filed by a creditor objecting to the discharge, the failure of a debtor to pay all filing fees, court review of a reaffirmation agreement on grounds of a presumption of hardship; the debtor’s failure to timely file certification showing completion of a financial management course. Typically in consumer cases, a debtor will not face a challenge to a discharge as long the debtor complied with the orders of the court and filed the proper documentation.

- Richard V. Stokan, Jr.