Florida residents who are struggling with debt and going through the bankruptcy process are probably waiting for the day they can hear they are no longer personally liable for their debts. Known as a discharge, it is a permanent order preventing creditors from taking any action against discharged debts. The question most debtors then might have is when does a discharge take place?
The timing of a discharge depends on the type of bankruptcy one files for. Therefore, discharge takes place quickly in a Chapter 7 bankruptcy. Courts grant a discharge soon after the time for objecting to debt discharge and for filing a motion for substantial abuse has expired. This is generally about four months after the petition for Chapter 7 bankruptcy was filed with the clerk of bankruptcy. With regards to Chapter 13 bankruptcy, a discharge is granted as reasonably quickly after the debtor has finished making all the payments in their plan.
Types of debts that are discharged
The discharge is generally given automatically, with a copy of the discharge mailed to all creditors, among other parties. However, it is important to know which debts are discharged, as it is possible not all of them are. Some debts are exempted, which is why those must still be paid off after the bankruptcy. For example, spousal support, alimony, tax claims and debts for personal injury are not dischargeable. Additionally, the discharge may be revoked in certain situations, such as if it was obtained fraudulently.
While bankruptcy is a legal way to discharge debts and get one’s financial life in order, it is important to understand the process and the end result. Speaking to an experienced attorney is one way to make sure debtors can benefit from the process and get control of one’s finances.