The most important aspect of filing a second bankruptcy is generally whether or not a discharge can be obtained. If no discharge is available due to timing, the bankruptcy will not be successful in eliminating personal liability on debts. The frequency with which a debtor can obtain bankruptcy discharges is limited by statute.
Discharge
The discharge is an order of the bankruptcy court ending personal liability on certain debts. The discharge is the instrument that erases debt and provides a fresh start to individual debtors.
Frequently Asked Questions
Our frequently asked questions also address Discharge:
What kinds of debts are non-dischargeable in bankruptcy?
In bankruptcy, a bankruptcy discharge ends a debtor's personal liability on all debts except those otherwise made non-dischargeable. This post contains a list of significant categories of non-dischargeable debt.
Can I file Chapter 13 Bankruptcy after a recent Chapter 7?
Occasionally, chapter 13 bankruptcy cases are filed by individuals who recently filed chapter 7 and obtained a chapter 7 discharge. As I noted in a post on filing second bankruptcy cases, a discharge in the chapter 13 case is unavailable unless 4 years have passed since the chapter 7 case was filed. However, chapter 13 can still be used adjust payment schedules, even without a discharge.
What is a discharge?
A bankruptcy discharge is granted by the bankruptcy court and serves as a permanent injunction against collecting certain past debts from the debtor personally. The discharge is the legal vehicle that grants the debtor a fresh start and wipes out past debts. Having a discharge granted is a goal of most bankruptcy filings.
Can I repay a debt after bankruptcy?
Generally yes, a person is free to pay back a debt voluntarily after bankruptcy.
What is a Chapter 13 Hardship Discharge?
In the ordinary case, a chapter 13 discharge (which eliminates personal liability on debts) is granted shortly after the completion of plan payments. A
Can a Discharge be Revoked?
There are certain very particular reasons why a bankruptcy discharge can be revoked.
Blog Posts
We have discussed Discharge in the following posts on our bankruptcy blog:
Chapter 7 Discharge & Chapter 13 Discharge - What's the Difference?
Feb 2, 2012
Once upon a time, the discharge available to debtors at the conclusion of a chapter 13 bankruptcy plan was known as a "super-discharge" as it ended personal liability on significantly more debts that its counterpart in chapter 7. Today, after the 2005 bankruptcy law (BAPCPA), the chapter 13 discharge isn't so super anymore. Nevertheless, it is not identical to the chapter 7 discharge in scope. This post considers what is dischargeable in chapter 13 bankruptcy, and highlights some notable differences with chapter 7.
Judgments, Judgment-Proof, and Bankruptcy
Oct 7, 2011
In essence, money judgments are final orders entered by courts that a defendant in a lawsuit owes a certain sum to the plaintiff. They represent a particular stage of the life of a debt, and might arise from all manner of debts. Consumers are most often faced with judgments when a credit card lender or utility company successfully sues to collect an amount owed, an auto lender obtains a judgment following repossession of car worth less than the money owed, or a mortgage lender obtains a judgment following a foreclosure that fails to pay off the loan. The latter two are known as " deficiency judgments" and on the occasions that they are obtained, often surprise the debtor who thought losing their house or car was the end of that debt.
Objections to Discharge or Dischargeability
Oct 11, 2011
The bankruptcy discharge is a central concern to most debtors and to many creditors. Without going into the details, the discharge serves to wipe out personal liability on a substantial portion of debts. For most chapter 7 debtors, obtaining a discharge is a primary reason they filed, as it is the instrument of their fresh start. The chapter 13 discharge is similarly important, as is the reward obtained for completing a chapter 13 plan.
