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One of the main goals to achieve in a bankruptcy case is to receive a discharge. A discharge is normally a single sheet of paper that indicates the elimination of all of your “dischargeable” debts.  The entry of your discharge relieves you from personal liability for most debts.

In a Chapter 7 case the discharge is entered following the expiration of the deadline for creditors to file any complaints objecting to the overall discharge or the discharge of their specific debt.  Complaints must be filed within 90 days from the date the case is filed.  The Bankruptcy Code sets out the grounds for objecting to the discharge, but very generally speaking most of the grounds are based upon bad conduct of the debtor. If no creditor or party in interest files a complaint then the debtor is entitled to entry of the discharge.  So in a Chapter 7 case the discharge is normally entered about four to five months after filing.

In Chapter 13 cases the entry of the discharge comes at the conclusion of the case.  Chapter 13 plans are typically between 36 to 60 months long.  The debtor is required to make all plan payments before the discharge is entered.  So, if the plan is 60 months long the discharge will not be entered until more than five years down the road.

Above you will notice that I used the word “dischargeable” debts. Although a bankruptcy discharge releases a debtor from personal liability for many debts, certain debts are deemed to be “non-dischargeable” debts. If a debt is non-dischargeable, it means that despite the entry of a discharge the debtor still owes the non-dischargeable debt.
There are various debts that fall into the non-dischargeable category but some of the common ones are alimony, child support, student loans and some taxes.   In addition, as noted above, a creditor may file a complaint seeking a determination that the debt owed to the creditor is non-dischargeable.  A common ground for a complaint in this category is a debt incurred by fraudulent conduct.  Also, if you sign a reaffirmation agreement, you agree to remain legally responsible for payment of a debt despite the entry of a discharge.
Once the discharge is entered, a copy of the discharge is mailed to all creditors listed in the bankruptcy petition.  Once entered, the discharge prohibits creditors from taking any actions to collect debts that have been discharged.  This means that the creditor can never seek to call about or collect the debt any longer.  If a creditor has a secured debt, such as a mortgage or car loan, the creditor cannot collect the debt personally from you, but it still has the right to recover its collateral.

Robert E. Tardif Jr.

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