Understanding what a Bankruptcy Discharge Means to You - All U.S. States

March 28, 2020 - Categories: Legal Articles

If you are trying to decide whether or not you should file a Chapter 7 or Chapter 13 bankruptcy, you should understand what it means to discharge debt. After you successfully complete a bankruptcy filing, the court will enter a discharge order. This order effectively cancels your liability to pay all of your discharged debts. In other words, debt that has been discharged has been eliminated. As you can imagine, the discharge of debt could save you thousands of dollars! A bankruptcy discharge is the most comprehensive form of debt relief you can obtain, which is why many people refer it as a “financial fresh start.”

When you file a personal bankruptcy, you are required to provide the court with full financial disclosure. This means you must provide a list of all of your debts, your creditors, all sources of your income, your expenses and information about your finances. It is imperative that you disclose everyone you owe money to (including family and friends) so they debt can be discharged.

The list of your creditors is commonly referred to as your “creditor matrix,” which the court uses to notify your creditors that you have filed for bankruptcy protection. Listing all of your creditors is important because once they are notified of your filing, the automatic stay bars them from taking any further collection actions against you. This means that harassing calls stop, collection lawsuits come to a halt, garnishments stop, etc.

Additionally, all creditors that receive notice of your bankruptcy case will be bound by the discharge order (as it applies to their type of debt) once it has been entered by the court. If a creditor ignores the discharge order and still tries to collect a discharged debt, you may be entitled to recover monetary damages from that creditor in court.

HOW CAN I GET A FREE LEGAL CONSULTATION AND AFFORDABLE LEGAL HELP REGARDING PREPARING AND FILING YOUR BANKRUPTCY CHAPTER 7 IN ANY U.S. STATE? 

Access Legal Care provides a free phone call with a Bankruptcy Petition Preparer, and affordable pricing for people who want help preparing and filing a Chapter 7 petition for bankruptcy, all schedules, the creditor matrix, and any other required file or document. 

If you would like us to help you with preparing and filing your Bankruptcy Chapter 7 in any U.S. state,  please schedule a free phone appointment with an experienced Bankruptcy Petition Preparer at https://www.accesslegalcare.com/schedule-a-phone-appointment/

We hope to be able to help you!