What debts are discharged in bankruptcy?

Most unsecured debts are discharged, including credit cards, medical bills, personal loans, and utility arrears. Debts that typically cannot be discharged include student loans (except in hardship cases), most taxes, child support, alimony, and debts from fraud or willful injury.

How long does it take to get a bankruptcy discharge?

In Chapter 7, the discharge typically arrives about 60 days after the 341 meeting, or roughly 3-4 months after filing. In Chapter 13, the discharge comes after completing all plan payments, which takes 3-5 years.

Can a creditor object to my discharge?

Yes. Creditors can file an adversary proceeding arguing that a specific debt should not be discharged due to fraud, misrepresentation, or other exceptions under 11 U.S.C. Section 523. They can also object to your entire discharge under Section 727 for misconduct like hiding assets.

What is the difference between a discharge and a dismissal?

A discharge eliminates your personal liability for qualifying debts permanently. A dismissal ends your bankruptcy case without eliminating any debts, as if you never filed. A dismissal may also impose a waiting period before you can file again.

Can my bankruptcy discharge be revoked?

In rare cases, yes. A discharge can be revoked within one year if the debtor committed fraud, failed to disclose assets, or refused to obey a court order. Revocation requires a court proceeding initiated by the trustee, a creditor, or the U.S. Trustee.

Part of the Open Bankruptcy Project

Scope of the Bankruptcy Discharge Injunction

Understanding exactly what the discharge injunction does and does not protect.

What the Discharge Covers

The discharge injunction under 11 U.S.C. Section 524(a)(2) prohibits any act to collect, recover, or offset a discharged debt as a personal liability of the debtor. This includes:

Lawsuits against the debtor
Collection calls and letters directed at the debtor
Wage garnishment
Bank account levies
Credit reporting showing a balance owed
Any other act to collect from the debtor personally

In Personam Only

The discharge is in personam -- it protects the debtor as a person. It does not protect the debtor's property from valid liens that existed before the bankruptcy. This is one of the most misunderstood aspects of the discharge.

Liens Survive Discharge

A secured creditor's lien on property survives the discharge even though the debtor's personal liability for the underlying debt is eliminated. Examples:

Mortgage: The bank cannot sue you for the mortgage debt, but the lien remains on the house. If you stop making payments, the bank can foreclose -- it just cannot pursue you for any deficiency.
Car loan: The lender cannot sue you for the loan balance, but the lien on the car remains. If you stop paying, the lender can repossess the vehicle.
Tax liens: An IRS or state tax lien recorded before filing survives the discharge. The tax debt may be discharged, but the lien remains on your property until it expires or is released.
Judicial liens: Liens from pre-petition judgments survive unless the debtor successfully avoids them under Section 522(f).

Co-Debtors Are Not Protected

The discharge injunction only protects the debtor who filed bankruptcy. If someone co-signed a loan or is jointly liable for a debt, creditors can still pursue the co-debtor even after the debtor receives a discharge.

Exception: In Chapter 13, the co-debtor stay under Section 1301 temporarily protects co-debtors on consumer debts during the case. But this protection ends when the case is closed.

Community Property

In community property states, the discharge may protect community property from the debtor's pre-petition debts under Section 524(a)(3). This extends the injunction beyond the debtor personally to community property acquired after the bankruptcy filing.

Cross-References

dischargeinjunction.com
dischargeinjunction.org
automaticstay.org -- Stay protection during the case
codebtorstay.org -- Chapter 13 co-debtor stay

Not legal advice. This page provides general information. Consult a consumer bankruptcy attorney for advice on your specific situation.

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