Discharge in Bankruptcy

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If you are considering filing for bankruptcy, you are going to want to understand how the bankruptcy discharge works and what it can and cannot do for your debt. At Richard A. Heller, P.A., our Orlando bankruptcy attorneys have 75 years of combined experience, we are A + Rated by the Better Business Bureau (BBB), and our attorney Richard A. Heller is BV® Distinguished™ Rated by Martindale-Hubbell®, a nationwide attorney rating service. If you are searching for an experienced attorney to handle your bankruptcy case, you have come to the right place.

What is the bankruptcy discharge?

The bankruptcy discharge releases the debtor from personal liability for certain types of debts. This means that once a debt has been discharged or "wiped out," the debtor is no longer required to pay that debt. What's more, the discharge itself acts as a permanent order that prohibits creditors from taking any form of debt collection action on discharged debts.

This means a creditor cannot commence or continue taking any legal actions, nor any communications with the debtor in the form of letters, phone calls, or emails etc.

When will the discharge occur? The timing on a discharge varies depending upon which Chapter of bankruptcy the debtor files under. In Chapter 7 case, the discharge is usually granted very quickly and about 60 days following the 341 meeting. Since Chapter 13 provides for a repayment plan over the course of 3 to 5 years, the discharge typically occurs around 4 years of filing.

Are all debts discharged?

Not all debts can be discharged in a bankruptcy. Generally, the exceptions to a discharge (debts that cannot be discharged) include:

  • Alimony
  • Child Support
  • Certain Tax Obligations
  • Student Loans
  • Victim Restitution
  • Court Ordered Fines

In Chapter 7 cases, a discharge may be denied if the debtor fails to produce the required tax documents, or if they fail to complete a course on financial management, or if they attempt to defraud creditors. With Chapter 13 cases, the case is usually discharged once the debtor has completed all of their payments under the repayment plan.

To learn more about the bankruptcy discharge, contact an Orlando bankruptcy attorney from Richard A. Heller, P.A. to arrange your free consultation - (407) 501-4052!

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