Everyone knows that you file bankruptcy to get a discharge of your debts. But what is it? A bankruptcy discharge is a permanent court order pursuant to statute stopping creditors from collecting or attempting to collect a debt as a personal liability from a debtor. Not every debt is discharged, nor does every debtor receive an order of discharge. But if you file for bankruptcy, discharge is what you want.
A debtor can be denied a discharge for fraud on creditors, fraud on the court or simply not completing all the requirements for filing bankruptcy such as taking the debtor education class. Certain debts may be required to be paid after a bankruptcy such as student loans or mortgages and car loans where you intend to keep those items of property or damages caused while driving drunk. Other times, you might want to continue to pay a debt by way of reaffirmation.
The U.S. Court system maintains a web page to explain the technicalities surrounding discharge. But a better, less technical description can be found on Attorney Cathy Moran’s website.
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