A bankruptcy discharge is a court order that releases the debtor from personal liability. This means that creditors are no longer allowed to attempt to collect on the discharged debts. However, this does not apply to all debts.
What is Bankruptcy Discharge & What Does It Mean?
For example, a bankruptcy will not erase all student loan debt. Private employers are also prohibited from discriminating against a debtor based on their bankruptcy filing. More info : https://www.scura.com/blog/wg-hat-does-it-mean-to-discharge-in-bankruptcy
The purpose of bankruptcy is to provide a fresh start. In addition, it provides a clear field for future effort. If a discharge is sought, the Licensed Insolvency Trustee acts as a referee to ensure that the parties follow the rules.
There are two common types of bankruptcy cases. Chapter 7 and Chapter 13. Both involve a period of restructuring and paying back debts. Typically, a chapter 7 case can take four to six months while a chapter 13 can last for four to five years.
When a bankruptcy case is closed, the debtor may be able to retrieve a copy of the discharge order. To do this, he or she should set up an account on the PACER system, located in many clerk’s offices. It costs a small fee for each page, but the information is public.
After a bankruptcy has been filed, it is possible to reopen the case if the debtor owes additional money or wants to sell an asset. The court will decide if it is reasonable to reopen the case.
Another reason for a reopening of a bankruptcy case is if the debtor has been contacted by a creditor. If the creditor has violated the no-contact rule, the judge can punish the creditor.