What Is A Bankruptcy Discharge?

A bankruptcy discharge is the legal document that the court gives you which says you do not have to pay your bills. It occurs at the end of a Chapter 7 "liquidation" bankruptcy or can occur after a Chapter 13 "payment plan" bankruptcy has been confirmed. It is a permanent court order which says the creditors cannot bother you anymore or sue you or try to make you pay them any money. They cannot call you on the telephone, they cannot send your letters, and they cannot knock on your front door. Secured creditors, however, may still have the right to recover a property that they have a lien on (such as a car or home which is mortgaged), but all unsecured creditors are not allowed to do anything to try to make you pay them more money.

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