When filing for a bankruptcy you will come across terms such as, bankruptcy discharge, automatic stay, or even different chapters of bankruptcy. All of these terms can be confusing, especially when you know that some of them may apply to you.
Today we are going to discuss what the commonly used term “bankruptcy discharge” means, and what it could mean for you and your proceedings.
A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In more simple terms this means that in some cases a debt can be discharged and the debtor will no longer be liable for its repayment.
Although a debtor may not be responsible for any discharged debts a valid lien that has not been voided will remain after a bankruptcy, and creditors will have all rights to seize property or collect payment.
Within a bankruptcy a discharge can happen at any time, it varies depending on chapter and other individual circumstances. For example, in a Chapter 7 case this typically happens promptly on the expiration of the time given to oppose discharges, and the time fixed for filing a motion to dismiss the case. This occurs typically four months from the date that you filed for bankruptcy.
However, in a Chapter 13 the grants a discharge as soon as applicable after you have fulfilled your payment plan. Since a payment plan can take anywhere from three to five years, that is about how long it will take to have any debts discharged.
There are 19 categories of debt that are not able to be discharged under various chapters. You can read more about those here.
You will hear and see terms throughout your bankruptcy that may have you confused. It’s always recommended that you hire an attorney that specializes in bankruptcy to help you understand everything about your case. If youhave carefully considered filing for bankruptcy and decided it’s right for youplease don’t hesitate to call C. Golden & Associates to set up a consultation today!