The Power and Permanence
of a Bankruptcy Discharge

A Bankruptcy Discharge Can Transform Temporary Relief Into Lasting Protection

At the conclusion of a bankruptcy case a debtor is generally given a “discharge” or legal forgiveness for their debt. A discharge order by Bankruptcy Court makes permanent, the temporary protection against creditors given by the automatic bankruptcy stay. While the automatic stay protects the debtor only during the pendency of the bankruptcy case, the discharge order protects the debtor long after the bankruptcy case is over. In a Chapter 7, “liquidation” case, a debtor often can discharge their debts without payment, whereas in a Chapter 13, “wage earners” case, or a Chapter 11 or Subchapter V “reorganization”, a debtor needs to complete a plan, requiring several years of payments to creditors, to obtain a discharge.

Most unsecured debts are dischargeable, although there are debts, such as child support, student loans and some taxes, that are considered to be non-dischargeable.