What is the Bankruptcy Discharge?
Usually, the whole reason to declare bankruptcy is to obtain the bankruptcy discharge. Once you have received your discharge in bankruptcy, no discharged creditor can take any enforcement action against you, ever.
In other words, the discharge order forever prohibits any type of collection effort against you for a discharged debt. The bankruptcy discharge entirely and eternally eliminates your personal liability on all discharged debts.
Your discharge acts as a legal release for all debts that you will no longer be legally required to pay.
A Permanent Injunction Against Debt Collection
Once statutory objection periods have elapsed, the clerk of court will issue your discharge. The Order of Discharge permanently enjoins creditors from collection on any discharged debt. The discharge injunction permanently replaces the Automatic Stay that takes effect with the bankruptcy filing.
Your discharge not only prohibits creditors from calling you, but also permanently prevents any lawsuits, garnishments, correspondence, and all other collection tactics. Any judgments on debts arising before the bankruptcy was filed are void after the discharge. Both Chapter 7 bankruptcy and Chapter 13 bankruptcy have a bankruptcy discharge.
Certain “Pass Through” Debts Survive the Discharge
Although the discharge will eliminate your liability on most debts, the general rule is that secured liens will survive (or pass through) the bankruptcy unaffected. Secured liens include mortgages, vehicle loans, security interest finance agreements, and most tax liens.
Recent taxes and student loans also pass through bankruptcy discharge, along with other specific but less common types of debts.
Consult with an Experienced Bankruptcy Lawyer
Finding yourself on the wrong side of a technical rule or disclosure requirement may jeopardize your case. You should file bankruptcy only if you are confident in the outcome of your case.
Achieving the maximum benefit from your discharge should be your main goal. Consult an experienced bankruptcy attorney to maximize the effect of your bankruptcy discharge.