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What does it mean to discharge a debtor?

Your discharge order erases your debts and makes sure your creditors can never attempt collection activity against you again for those discharged debts. Once you receive your discharge, you can focus on rebuilding your financial future by checking your credit report, creating a budget, and using credit responsibly.

What does discharging debtor mean?

What is a discharge in bankruptcy? A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.

What happens if a creditor objects to discharge?

If a creditor files a complaint objecting to your discharge order, and the bankruptcy court rules in favor of the creditor, youll have to pay the remaining balance on the debt. You may also choose to have the dispute settled outside of court by arranging an agreement with the creditor who filed the objection.

What happens after debt is discharged?

Individuals can find information regarding these exceptions in the bankruptcy code, but speaking to a bankruptcy attorney may be more straightforward. However, when all is said and done, the creditor is typically responsible for covering the cost of any discharged debt.