Clearing doubts on discharge

In a discharge, as a debtor, you will be legally free from personal liability in certain kinds of debts. This means you will not have to pay those debts any more. Legally, no company can initiate any form of collections activities in your case. In the case of a valid lien, where property such as a home is collateral, the debtor can claim the property. This is only if the lien has not been invalidated.

How long it takes to get a discharge depends on the chapter under which one has filed for bankruptcy. In case there are no objections, within the stipulated time to the discharge, the courts will automatically grant it at the end of the period. In the case of chapter 7, the procedure roughly take 4-5 months. In the cases of chapters 11, 12 and 13, the discharge is granted within a short period of the individual completing necessary payments. The period is normally around 4 years from the time of filing. There are certain exceptions that prevail in the case of chapters 7 and 13.

Obtaining a discharge is not all that difficult is there are no objections to it being filed. A copy goes to all involved – all the creditors, the legal representatives of both sides. It is actually a formal discharge, which states that the creditors cannot move forward any collection activities. Doing so would be contempt of court and result in legal action being taken against them.

Not all debts can be discharged. Nineteen basic exemptions are a part of chapter 7, 11 and 12. Chapter 13 has a limited number of exceptions. These categories pertain to areas such as tax debts, alimony and child support, debts from personal injury to other cases, fines and penalties to government institutions and those incurred as a result of criminal activities.

Not all cases of chapter 7 bankruptcy give the debtor a right to a discharge. These can be objected to by any of the people involved. There are several other stipulations put forward by the court in terms of documents to be submitted and the like that can prevent a discharge from happening under chapter 7. Chapters 12 and 13 generally entitle the debtor to a discharge.

If one has secured a discharge under chapter 7 and 11, then they will not be able to get discharge in any category for a period of 8 years following that. This varies for filings under different chapters. There are a few reasons where a discharge can be revoked. These are in cases where the discharge has been obtained through fraudulent means. A court ruling will then come into order. Out of conscience, a debtor can repay his debt despite receiving a discharge.