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What Does a Discharge in Bankruptcy Really Mean?

There are so many legal terms that present themselves when it comes to bankruptcy proceedings it can be totally frustrating for the individual who is trying to get themselves back on track by using bankruptcy as a financial relief. One very common term that they know but may not really understand is the bankruptcy discharge.

Discharging Debt

What this technically means is that for some of the debtor’s debts the discharge releases them from any personal liability to pay those debts. This means once the debt has been discharged in the bankruptcy courts the creditor cannot take any further action. They have no legal recourse. They cannot make contact with the debtor in regards to the debt.

It is very important to keep in mind though, that this doesn’t mean a lien that has been put on a property cannot be followed through with. This means that if there is a lien against your car, then the creditor holding that lien can take legal action to seize the vehicle.

In most cases you will want to get the discharge done as quickly as possible. How fast this happens will depend on which chapter of bankruptcy you have filed for. Your New Albany bankruptcy lawyer will be able to give you a good indication as to when it should take place.

The discharge usually comes about automatically unless there have been objections presented regarding this. Your creditors will be notified by the courts of the discharge.

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