What is 'discharge'?

[ted1]

What does the term discharge mean? Does it refer to what happens to someone when they complete their bankruptcy term?

[Tcm9669]

Ok, I found this definition for you, perhaps it can help you a little:-

"Generally, a discharge in bankruptcy means that an individual debtor's obligations are erased or wiped out. When a discharge is granted, it protects the debtor from personal liability on the discharged debt. A discharge is only available to certain debtors and for certain debts, however. For example, debtors that are not individuals cannot receive a discharge in a Chapter 7 bankruptcy"

[chandni_aqua]

In simple terms when you pay off the amount to overcome your bankruptcy they free you from the term "bankrupt". This process is called "discharging" your bankruptcy..

[chrissie1101]

Right. So you are no longer officially "in bankruptcy" or "bankrupt" but it will still remain on your credit report. It is impossible to get credit before discharge, and very difficult to after for the allotted years.

[Tcm9669]

Originally Posted by chrissie1101

Right. So you are no longer officially "in bankruptcy" or "bankrupt" but it will still remain on your credit report. It is impossible to get credit before discharge, and very difficult to after for the allotted years.

Well that is too bad, if it will be difficult :S and it will PERMANENTLY, for ever in your credit report?

[hank_freid]

Hi,

Well, A "discharge" in bankruptcy means that you are legally free and clear of any obligation to repay certain debts; they are gone. The creditor no longer has any right to collect that debt. The debtor no longer has any obligation to repay it. The timing of the discharge varies, depending on the chapter under which you file. In a Chapter 7 bankruptcy, for example, you normally receive a discharge just a few months after the petition is filed. In a Chapter 13 bankruptcy, the discharge typically occurs when you have successfully finished the payments you agree to make under your plan.

[hank freid love]

The goal of a bankruptcy proceeding is to obtain a discharge of debts. When a debt is discharged, it is no longer enforceable against the debtor personally. When you have personal liability for a debt, a creditor with a judgment can use legal processes, like levy and garnishment, to reach your non exempt assets and earnings even though those assets were not pledged as collateral and the debt was unsecured. The bankruptcy discharge eliminates the debtor's personal liability for a discharged debt. Even though personal liability is discharged, most liens, the liability of an item of property for a debt secured by that property, pass unaffected through bankruptcy unless a court order modifies or voids them.

[kervinrudes]

Hello, this was the right thing that you have done. I don’t think that you were wrong.
All the best!