{"id":286912,"date":"2021-02-16T09:35:02","date_gmt":"2021-02-16T14:35:02","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/chapter-7\/what-is-a-chapter-7-debt-discharge.html"},"modified":"2023-10-07T22:08:05","modified_gmt":"2023-10-08T03:08:05","slug":"what-is-a-chapter-7-debt-discharge","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/chapter-7\/what-is-a-chapter-7-debt-discharge.html","title":{"rendered":"What Is a Chapter 7 Debt Discharge?"},"content":{"rendered":"\n
\n \n
\n

What Is a Chapter 7 Debt Discharge?<\/h1>\n
\n
\n

Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

No matter what type of bankruptcy you seek under the U.S. Bankruptcy Code<\/a>, chances are that some or even all of your debt can be discharged. A discharge means you are not personally liable for the money and do not need to pay it back. The creditor you owe, such as a hospital or credit card company, cannot call or take collection actions against you once the debt is permanently discharged.<\/p>\r\n

Depending on their financial situation, people often file a Chapter 7 bankruptcy to remove credit card debt and seek debt relief. You can read more about what to expect<\/u><\/a> if you are new to the Chapter 7 bankruptcy process.<\/p>\r\n

Those filing Chapter 13 bankruptcy are required to repay most of their debt in a repayment plan. Some debts may have a bankruptcy discharge, but filers may have to keep personal liability for other debts.<\/p>\r\n

Read on about bankruptcy basics regarding Chapter 7 debt discharge releases.<\/p>\r\n

Debt Discharge Comes After Selling Off Assets<\/h2>\r\n

Chapter 7 bankruptcy<\/a> may involve liquidating (or selling off) assets to pay past debts. Only after this process is completed can you have qualifying debts discharged. Some property is protected from liquidation by federal or state bankruptcy exemptions<\/u><\/a>.<\/p>\r\n

Many people filing for Chapter 7 can keep most of their property. It will be up to the filer’s attorney and bankruptcy trustee to decide what they can keep, what deals they can make with the creditor, and what they need to give up in their bankruptcy case. Learn more about the U.S. trustee here<\/a>, who generally appoints the bankruptcy trustee in a bankruptcy case.<\/p>\r\n

Once nonexempt assets are liquidated, a court order will discharge debts so long as there has been no objection made to discharge or dischargeability. The Chapter 7 bankruptcy discharge process occurs about four months after you first file in bankruptcy court.<\/p>\r\n

Remember that the filer must complete educational classes on credit counseling within 180 days before filing and on debt management between filing and receiving the discharge, or the judge may deny the debt discharge.<\/p>\r\n

Debts That Cannot Be Discharged<\/h2>\r\n

According to bankruptcy law, there are many exceptions to the debts you can get rid of in Chapter 7 bankruptcy. You should consult an experienced bankruptcy attorney for a detailed review of your debts.<\/p>\r\n

Debts that cannot generally be discharged include:<\/p>\r\n