What does it mean if Chapter 7 is discharged?

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.

Can a debtor be discharged in Chapter 7 bankruptcy?

The United States Bankruptcy Code permits a court to discharge debts of an individual debtor in Chapter 7 bankruptcy pursuant to Section 727.

What does discharge mean in a bankruptcy case?

You may have recently received a letter from a trustee in a pending bankruptcy case indicating that the debtor received a discharge in the bankruptcy. You are not alone if you have no idea what this notice of discharge means.

Can a bankruptcy debtor request a hardship discharge?

Although a chapter 13 debtor generally receives a discharge only after completing all payments required by the court-approved (i.e., “confirmed”) repayment plan, there are some limited circumstances under which the debtor may request the court to grant a “hardship discharge” even though the debtor has failed to complete plan payments.

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.

Can a debtor be discharged in a Chapter 7 bankruptcy?

In a chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations. 11 U.S.C. § 727(a)(1). Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged.

What do you need to know about bankruptcy discharge?

A bankruptcy discharge is a court order issued at the end of a Chapter 7 or Chapter 13 case that relieves you from your obligation to pay a debt. You must complete all the requirements for your bankruptcy case to receive a discharge.

Can a discharge be revoked in a chapter 13 bankruptcy?

A debtor is ineligible for discharge under chapter 13 if he or she received a prior discharge in a chapter 7, 11, or 12 case filed four years before the current case or in a chapter 13 case filed two years before the current case. Can the discharge be revoked? The court may revoke a discharge under certain circumstances.

What happens if a creditor violates a discharge order?

The creditor can be fined if the court finds that the creditor violated the discharge injunction. Before going that route, try sending a copy of your order of discharge to stop the collection activity and if that doesn’t work, talk to a bankruptcy attorney about taking legal action.