Clarification of Discharge

Clarification of Discharge """In a discharge, as a debtor, you will no longer be legally responsible for certain types of debts. This means you will no longer be required to pay those debts. Legally, no company is permitted to initiate any type of collection activity in your case. In the case of a valid lien, where property such as a residence serves as collateral, the debtor has the right to recover the property. This only applies if the lien has not been voided.

How long it takes to obtain a discharge depends on the chapter of bankruptcy under which one has filed. If there are no objections to the discharge within the allotted time, the courts will grant it automatically at the end of the period. In the case of chapter 7, the procedure takes approximately four to five months. In the cases of chapters 11, 12, and 13, the discharge is granted quickly following the completion of required payments. Typically, the period is around four years from the date of filing. There are particular exceptions applicable to chapters 7 and 13.

Obtaining a discharge is relatively simple if there are no objections to its filing. A copy is sent to all parties involved, including all creditors and legal representatives from both factions. It is an official discharge that prohibits creditors from pursuing collection efforts. This would constitute contempt of court and result in legal action against them.

Not every debt is dischargeable. There are 19 fundamental exemptions in chapters 7, 11 and 12. Chapter 13 contains only a few exceptions. These categories include tax debts, alimony and child support, debts from personal injury to other cases, fines and penalties to government institutions, and debts incurred due to criminal activity.

In not all chapter 7 bankruptcies is the debtor entitled to a discharge. These can be objected to by any involved party. Chapter 7 discharge can be prevented by a number of additional court requirements pertaining to documents to be submitted and the like. Chapters 12 and 13 generally grant a discharge to the debtor.

If a person has received a discharge under chapters 7 and 11, they will not be eligible for any other type of discharge for eight years. This varies depending on the registration chapter. There are a few grounds for revoking a discharge. In these situations, the discharge was obtained through fraudulent means. The court will then issue a ruling. Despite receiving an absolution, a debtor can repay his debt out of conscience.

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