How is a debt discharged in a bankruptcy?

How is a debt discharged in a bankruptcy?

A bankruptcy discharge is the ultimate goal of bankruptcy. It is an Order from the court, releasing you from having to pay back certain debts. You are no longer responsible for the liability because it was “discharged”/ wiped out/ removed. There are very few debts that cannot be discharged through bankruptcy.

How often can you get a bankruptcy discharge?

The United States Bankruptcy Code limits how often an individual can receive a bankruptcy discharge. This is meant to prevent people from taking advantage of the system. The law will not allow a person to erase their debts through bankruptcy every year. How often you can receive a bankruptcy discharge depends on which type of bankruptcy you file.

Can a hardship discharge be used in Chapter 7 bankruptcy?

Such a discharge is available only to a debtor whose failure to complete plan payments is due to circumstances beyond the debtor’s control. The scope of a chapter 13 “hardship discharge” is similar to that in a chapter 7 case with regard to the types of debts that are excepted from the discharge.

Can a Bankruptcy Court revoke a discharge order?

In chapter 11, 12, and 13 cases, if confirmation of a plan or the discharge is obtained through fraud, the court can revoke the order of confirmation or discharge. May the debtor pay a discharged debt after the bankruptcy case has been concluded? A debtor who has received a discharge may voluntarily repay any discharged debt.

What happens to your house payments after bankruptcy?

The credit bureaus would report your house payments as long as you are current, but they come off if you get behind. Sorry, but we don’t have that choice. After bankruptcy mortgage payments–current or late–don’t show on your credit. That’s just the way it is.

What happens at the end of a bankruptcy case?

At the end of a successful bankruptcy case the bankruptcy court issues a bankruptcy discharge order, which erases the filer’s personal liability to pay back the debt. That discharge is generally permanent. Although a bankruptcy discharge can be revoked, it’s rare.

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