What is a Discharge in Bankruptcy?

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Many people understand that bankruptcy can help those who are having financial problems, but are unclear about how exactly bankruptcy can help them. A bankruptcy discharge is perhaps the most attractive benefit of filing for bankruptcy and the main reason why most people file. Simply put, a bankruptcy discharge releases the person from any legal obligation to pay certain debts back. In many cases, all of an individual’s debts are dischargeable, meaning that after a bankruptcy is over, the person no longer owes his or her creditors any money. To determine whether bankruptcy would be helpful in your situation, you should have your case reviewed by an experienced bankruptcy lawyer as soon as possible.

How Long Does it Take to Obtain a Bankruptcy Discharge?

The exact length of time that passes between filing for bankruptcy and obtaining a discharge depends on a many things, including which type of bankruptcy you file for and the complexity of your case. If you file for Chapter 7, which is the most common type of consumer bankruptcy, the discharge usually take place about 100 days  after a case is filed. In Chapter 13 bankruptcy, the bankruptcy discharge usually occurs at the end of the term during which the debtor is making payments on his or her Chapter 13 repayment plan. Since these plans can last between three and five years, it may be some time before a debtor who has filed for Chapter 13 receives theirs. In Chapter 13, however, a debtor is under the protection of the automatic stay so long as he or she is current on payments, meaning that creditors cannot take any collection activity.

What Kinds of Debts are Dischargeable?

Bankruptcy can help people eliminate many different types of debt. Some of the more common kinds of debts that are regularly discharged in a consumer bankruptcy are:

• Credit card debts;
• Medical bills;
• Utility bills;
• Rent;
• Auto loans;
• Personal loans;
• Certain tax debts;
• Civil judgments;
• Business debts; and
• Consumer debts.

There are certain types of debts that cannot be discharged, such as student loans and child support. There may be exceptions available in your case, however, so it is  very important for anyone experiencing difficulty debt to talk to an attorney about his options.

Contact a Rochester Bankruptcy Attorney Today to Find Out How Bankruptcy May be Able to Help You

If you are having a hard time paying your bills, you should talk to an experienced bankruptcy lawyer as soon as possible. In many cases, filing for Chapter 7 or Chapter 13 bankruptcy can help eliminate many, if not all, of debts. In cases where certain debts can’t be discharged, bankruptcy may still be able to help by freeing up income to better manage other debts. To schedule a consultation with Rochester bankruptcy lawyer Karen E. Evangelista, call our office today at 248-652-7990.