Discharging Debts

The goal of filing bankruptcy is to obtain a discharge of debts, which means the debtor is no longer personally liable for that debt. A debt discharge is a statutory injunction against the commencement or continuation of an action to collect, recover or offset a debt as a personal liability of the debtor. Any debt incurred after the bankruptcy process will NOT be discharged.

Discharge is the release of a debtor from the payment of debts in a bankruptcy process; sometimes called a “release” from a debt. A debt is discharged or canceled by a court during bankruptcy proceedings in order to relieve the debtor of the requirement to pay off the debt. Discharge only applies to debts incurred before the bankruptcy proceedings begin.

A dismissal is the termination of the case without either the entry of a discharge, or a denial of discharge. After a case is dismissed, the debtor and the creditors have the same rights as they had before the bankruptcy case was commenced. Dismissal is the penalty for many minor infractions of bankruptcy procedures.

If you find yourself confused or with more questions about the bankruptcy process, contact us today. The Cook Law Firm is comprised of bankruptcy attorneys and experts who are here to help people free themselves from their debt.