Understanding Discharge
– By Priya Jestin, Staff Writer
Martha knew her financial situation wasn’t too good, and she had prepared herself for the inevitability of bankruptcy. What she wasn’t prepared for was the lingo! Agreed, our attorneys are well conversant in legal language. But what about simple folks like us. How much do we understand of a term called discharge?
A bankruptcy discharge is supposed to release the debtor from personal liability for certain specified types of debts. This means that you (the debtor) are no longer legally required to pay any debts that are discharged. In chapter 7 cases, the debtor does not have an absolute right to a discharge. An objection to the debtor’s discharge may be filed by a creditor, by the trustee in the case, or by the U.S. trustee. Creditors receive a notice shortly after the case is filed that sets forth much important information, including the deadline for objecting to the discharge.