Discharge of Debtor in a Chapter 7 Case

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Discharge of Debtor in a Chapter 7 Case
Discharge of Debtor in a Chapter 7 case is a court order that releases a debtor from their personal liability for certain types of debts. This order is issued by the Bankruptcy Court after the debtor has successfully completed all required steps of the bankruptcy process. It is important to note that while a discharge of debtor releases the debtor from their personal liability for certain types of debts, it does not necessarily mean that the debt is erased completely. There are two types of Discharge of Debtor in a Chapter 7 case: 1) General Discharge — This type of discharge releases the debtor from personal liability for most types of unsecured debts, such as credit card debt, medical bills, and personal loans. 2) Partial Discharge — This type of discharge releases the debtor from personal liability for certain types of debts, such as student loans and certain taxes.

Discharge of Debtor in a Chapter 7 case is a court order that releases a debtor from their personal liability for certain types of debts. This order is issued by the Bankruptcy Court after the debtor has successfully completed all required steps of the bankruptcy process. It is important to note that while a discharge of debtor releases the debtor from their personal liability for certain types of debts, it does not necessarily mean that the debt is erased completely. There are two types of Discharge of Debtor in a Chapter 7 case: 1) General Discharge — This type of discharge releases the debtor from personal liability for most types of unsecured debts, such as credit card debt, medical bills, and personal loans. 2) Partial Discharge — This type of discharge releases the debtor from personal liability for certain types of debts, such as student loans and certain taxes.

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FAQ

For Chapter 7, it's often the case that a stay will last the 3-5 months the court case is open. For Chapter 13, bankruptcy cases could take anywhere from 3-5 years. Again, multiple filings can also affect the length of an automatic stay.

There is no ceiling on the amount of debt with which you can file for Chapter 7 bankruptcy. Chapter 7 also is often preferred over Chapter 13 because it wipes out debt and doesn't involve repayment. The rules under Chapter 13 are more stringent, but Chapter 7 is open to any individual with any amount of debt.

For most filers, a Chapter 7 case will end when you receive your discharge?the order that forgives qualified debt?about four to six months after filing the bankruptcy paperwork. Although most cases close after that, your case might remain open longer if you have property that you can't protect (nonexempt assets).

Chapter 7 bankruptcy generally takes between four and six months to complete, but there are some scenarios that may make the process longer: More information is needed.

For most filers, a Chapter 7 case will end when you receive your discharge?the order that forgives qualified debt?about four to six months after filing the bankruptcy paperwork. Although most cases close after that, your case might remain open longer if you have property that you can't protect (nonexempt assets).

A discharge releases a debtor from personal liability of certain debts known as dischargeable debts, and prevents the creditors owed those debts from taking any action against the debtor or the debtor's property to collect the debts.

The Chapter 7 Discharge. A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor.

Most Chapter 7 bankruptcy cases take between 4 - 6 months to complete after filing the case with the court. The order erasing eligible debts can be granted as early as 90 days from the date the case was filed. No-asset cases are typically closed a couple of weeks after the discharge date.

More info

An individual receives a discharge for most of his or her debts in a chapter 7 bankruptcy case. A creditor may no longer initiate or continue any legal or other action against the debtor to collect a discharged debt.In chapter 7 cases, the debtor does not have an absolute right to a discharge. A "discharge letter" is a term used to describe the order that the bankruptcy court mails out toward the end of the case. A "discharge" means you are not personally liable for the money and do not need to pay it back. For most filers, a discharge marks the end of their bankruptcy case. The bankruptcy discharge releases the debtor from liability for certain debts, so the debtor is no longer legally required to pay the balance. The Chapter 7 "discharge order" is the final order you receive in your Chapter 7 bankruptcy. Some taxes may be dischargeable. Whether a federal tax debt may be discharged depends on the unique facts and circumstances of each case.

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Discharge of Debtor in a Chapter 7 Case