May 21, 2019

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Bankruptcy Discharge

Upon receiving a bankruptcy discharge, you are released from personal liability in regards to the specific debts that were discharged. When the court orders a final discharge, a notice of the discharge will automatically be mailed to all of the relevant creditors.

The details and the timing of the discharge will depend on which chapter of bankruptcy you and your bankruptcy attorney decide to file.

Can Creditors Still Call Me After My Debts Have Been Discharged?

Bankruptcy discharge prohibits your creditors from taking any action against you to collect the discharged debts. The notice mailed to your creditors about your discharged debts to them also instructs the creditor to take no further action against you to collect that debt.

This means:

  • No calls from collections agencies
  • No letters
  • No legal action
  • No personal contact

When Will I Receive the Discharge From My Debts?

That depends.

A bankruptcy discharge is granted sooner in a Chapter 7 Liquidation than in other types of personal bankruptcy filings. Under Chapter 7, creditors are given a window of time to object to the discharge, or to file a motion to dismiss the case. Once this window closes and there have been no objections or motions to dismiss the case, the court usually grants your bankruptcy discharge. This may all happen within as little as four months from the time you file your Chapter 7 bankruptcy petition.

A bankruptcy discharge pursuant to a Chapter 11, Chapter 12, or Chapter 13 consumer bankruptcy case is usually granted as soon as the repayment plan is completed. This may take up to five years, depending on the provisions of your repayment plan.  A Chapter 12 or Chapter 13 plan ordinarily provides for payments to be made over a period of three to five years.

Will All of My Consumer Debt Be Discharged?

There are about 19 types of debt that cannot be discharged under a Chapter 7, Chapter 11 or Chapter 12 bankruptcy (and a few less under Chapter 13 cases). Contact one of the experienced consumer bankruptcy firms listed in this website to discuss which of your debts qualify for discharge.

Under What Circumstances May the Court Deny My Bankruptcy Discharge?

The court requires individual debtors to complete “an instructional course concerning financial management” and can deny your discharge in a Chapter 7 or Chapter 13 consumer bankruptcy case if you do not satisfy this requirement.

Additionally, the court may deny a Chapter 7 discharge for these reasons:

  • A failure to provide the court with requested tax documents.
  • A failure to account for a loss of assets
  • A transfer property with the intent to defraud creditors
  • You have received a bankruptcy discharge under Chapter 7, Chapter 11, Chapter 12 or Chapter 13 within the restricted timeframe.

Consult with one of the experienced bankruptcy law firms in this website to discuss the requirements for a bankruptcy discharge of consumer debts.