Bankruptcy Discharge – What it is
A [tag-tec]bankruptcy discharge[/tag-tec] frees the debtor from individual legal responsibility for particular types of debts. In simpler words, debtor is no longer lawfully required to pay off any debts that are discharged. The discharge is a enduring order keeping out the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, mails and personal contacts.
Although a debtor is not personally liable for discharged debts, a valid lien – a charge upon specific property to secure payment of a debt that has not been made unenforceable in the bankruptcy case will remain after the bankruptcy case.
Discharge occurrences
The timing of [tag-tec]bankruptcy discharge[/tag-tec] differs, depending on the chapter under which the case is filed. In a chapter 7 cases, for instance, the court typically awards the discharge swiftly on running out of the time fixed for filing a grievance opposed to discharge and the time fixed for filing a proposition to dismiss the case for substantial abuse.
In general, this occurs about four months after the date the debtor files the petition with the clerk of the bankruptcy court. In individual chapter 11 cases, and in cases under chapter 12 and 13, the court normally grants the discharge as soon as feasible after the debtor completes all payments under the plan.
Since a chapter 12 or chapter 13 plans may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing.
How the debtor get a discharge
Unless there is court case involving objections to the discharge, the debtor will usually involuntarily receive a discharge. The Federal Rules of Bankruptcy Procedure provide for the clerk of the bankruptcy court to mail a copy of the order of discharge to all creditors, the U.S. trustee, the trustee in the case, and the trustee’s attorney, if any. The debtor and the debtor’s attorney also receive copies of the discharge order. The notice, which is a copy of the last order of discharge, is not specific as to those debts determined by the court to be non-dischargeable. Any unplanned failure on the part of the clerk to send the debtor or any creditor a copy of the discharge order swiftly within the time requisite by the rules does not affect the validity of the order granting the discharge.
Are all of the debtor’s debts discharged or only some?
Not all debts are discharged. The debts discharged vary under each chapter of the [tag-tec]Bankruptcy Code[/tag-tec]. Section 523(a) of the Code specifically accepts a range of categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy.
Can a debtor receive a second discharge in a later chapter 7 case?
The court will refute a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed. Also if the debtor before received a discharge in a chapter 12 or chapter 13 case filed within six years before the date of the filing of the second case unless: the debtor paid all allowed unsecured claims in the earlier case in full, or the debtor made payments under the plan in the earlier case totaling at least seventy percent of the allowed unsecured claims and the debtor’s plan was proposed in good faith and the payments represented the debtor’s best effort.
