A discharge is one of the more positive aspects of bankruptcy in that it relieves the debtor of any obligation to pay off certain debts. If you’ve filed Chapter 13 bankruptcy then you will be given a restructured payment plan for your outstanding debts which must be completed in no more than five years. Generally, the discharges are granted about four years after the bankruptcy is filed. At which point all creditors whose loans have been discharged will be notified by the court that the discharge has occurred and to not continue any further collection activity against the debtor.
However, if you fail to complete the mandatory credit counseling session at the time of the discharge then the judge will likely deny any discharges be made. That is why it is so important to retain a competent bankruptcy attorney and be sure you complete every stage of the bankruptcy to its fullest.
More on Discharges
So which of your debts can be discharged? That is a question you will need to take up with an expert such as a licensed bankruptcy attorney. There are plenty of loopholes and exceptions on the matter and each state has its own set of guidelines as well. In general though, debt such as a student loan is not dischargeable and must be paid off even after the bankruptcy has ended.
What would you do as a creditor if you loaned somebody money and then received notification from the courts that you will not receive full repayment on your loan? Chances are you wouldn’t be too happy about it and take action. Some creditors will challenge a discharge on their loan because they obviously don’t want to lose out on it. In this case, the creditor may request a meeting with the debtor’s attorney to try and work out repayment and if that does not work they may try and place a lien on the debtor’s property.
Chapter 13 Bankruptcy Discharges: Your Hands Are Clean
If you’re eligible and receive a discharge on any loan then it should be reason for joy. You are no longer legally bound to that loan which is a tremendous feeling and also may be an indication that bankruptcy isn’t completely bad. In order to get all the discharges owed to you it is crucial you retain the services of a licensed bankruptcy attorney who knows your rights and your state’s bankruptcy laws and will get you a discharge on every eligible loan.
