Bankruptcy discharge is gained when a person files for bankruptcy and completed certain stages if the case filed. This releases the debtor from the personal liability of certain debts which is covered at the moment you filed for bankruptcy and are discharged by the bankruptcy court.
A debt is discharged by the court during series of bankruptcy proceedings in order to relieve the debtor of the requirement to pay off the debt. In other words, the debtor is not anymore required to pay any debts that are discharged. The discharge is a permanent order which prohibits the creditor in collecting payments, or taking any form of legal actions and making certain communications with the debtor, such as telephone calls, letters, and personal contacts after the bankruptcy discharge giving a bad news to the creditors.
When the debtor is now free from his previous debts that are included prior to his filing of bankruptcy, then it is now the best time to make a fresh financial start ? a time to rebuild his credit score which is one of the main purposes of bankruptcy law.
Although the debtor is longer personally liable for discharged debts, a property that is secured by a valid lien from the creditor may have the right to take away that certain property. Say, the debtor is discharged from his debt for a car, but the creditor holds a valid lien for that house, then the creditor may have the right to take away the car. Therefore, a valid lien may help the creditor to repossess the property.
Bankruptcy discharge includes discharge again judgment creditors, but they must be liquidated prior to completion of the plan. There are also certain types of debts that are not subject to discharge. Such as tax debts, debts for spousal and child payments or alimony, court fines, criminal restitutions and debts relating to willful or malicious standard by Chapter 7, judgments will also not discharged in Chapter 13 if they are willful or malicious
The timing of the bankruptcy discharge may vary depending on the chapter of which the case is being filed. When the debtor files Chapter 7 (liquidation), the court usually grants discharge on the expiration of time allotted from filing up to the dismissal of the case. In cases for Chapter 11 (reorganization or liquidation for business), Chapter 12 (family farmers bankruptcy) and Chapter 13 (wage earner plan), the court generally grants the discharge as soon as practicable after the debtor completes all payments under the plan. Bankruptcy discharge normally takes place around a year after a debtor filed bankruptcy, but if the findings of the investigation are presented to the court before the one year period, you may be discharged sooner.
Always bear in mind that the fresh financial start that is provided by the bankruptcy discharge in a way of forgiving a debtor from his debts, thus removing the financial burdens that is carried by the debtor. If you need additional information with this matter, contact a Spokane Bankruptcy Lawyer today.