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How does discharge in bankruptcy work?

On Behalf of | Feb 15, 2017 | Bankruptcy |

Ohio residents, under the right circumstances, can file for bankruptcy to help them when they are facing significant financial struggles. The two main types of bankruptcy available are Chapter 13 and Chapter 7. In a Chapter 13 filing, the discharging of some remaining debts may take place following the successful completion of an approved repayment plan. In a Chapter 7 filing, the discharging of all qualifying debts takes place upon bankruptcy approval.

If you are considering filing for bankruptcy, it is normal to have questions about how everything works. Some of the most common questions are in regard to the discharge process.

If granted a discharge, what does that mean?

If you have debts discharged in bankruptcy, it means that you are no longer responsible to make payments on those debts. Creditors cannot legally contact you or attempt to collect on discharged debts.

How fast after bankruptcy approval are debts discharged?

This depends on the type of bankruptcy filed. In a Chapter 13 filing, this will occur after the three to five year repayment plan is completed. In a Chapter 7 filing, however, it will happen almost immediately following court approval. All affected creditors will receive notice of discharge from the court in the appropriate time frame.

What debts cannot be discharged?

Not all debts are dischargeable in bankruptcy. These include:

  • Child support
  • Alimony
  • Student loans
  • Fines
  • Penalties
  • Restitution

What happens if creditors still try to collect discharged debts?

Sadly, this does happen. No one should have to deal with continued creditor harassment following an approved bankruptcy filing and discharge of debts. If creditors continue to contact you and request payment on discharged debts, it is possible to file a legal motion in court in order to have the situation investigated. A judge can hold the creditors in contempt of court and order them to pay fines for trying to collect these debts.

Get answers to all your bankruptcy questions

These are just a few of the common questions regarding bankruptcy discharges. An experienced attorney will be able to provide further information about this particular topic as well as answer any other question you may have.

Dealing with financial struggles can really take its toll over time. Unfortunately, this is something that affects numerous Ohio residents due to unemployment, illness, emergencies and various other reasons. If you need help gaining control of your economic situation, a bankruptcy attorney will be able to review your case and, if appropriate, assist you in taking the right legal actions for your circumstances.


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