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Discharge of Debt in Bankruptcy

A discharge is an order issued by the federal Bankruptcy Court that eliminates certain outstanding debts.  When a debt is discharged, it is no longer legally enforceable against the debtor.  A discharge means that a creditor may never try to collect the debt from the debtor. 

If a creditor believes that the debtor is not entitled to receive a discharge, or that the debt owed to them is not dischargeable under the Bankruptcy Code, they must file a complaint or motion in the case with the Clerk of the Court before the deadline established and must prove your assertion to the satisfaction of the Bankruptcy Court Judge.

The discharge of debt in bankruptcy involves a decision made by the court at the conclusion of a bankruptcy case.  The discharge order forgives any remaining dischargeable debts which cannot be paid by the debtor as part of its Plan of Reorganization, or alternatively following the liquidation of the debtor's assets and distribution of the monetary proceeds of that sale.

Copyright 2010 by Michael C. Dennis.  Mr. Dennis is a consultant and he can be reached via email at  mcdennis13@yahoo.com