South Florida Bankruptcy Lawyer

Bankruptcy Discharge

A bankruptcy discharge is the legal removal a debtor’s personal obligation to pay certain debts back to the creditor. That is, a bankruptcy discharge eliminates some of the debt and that one party personally owes to another.

Although bankruptcy discharge can occur for any type of bankruptcy, it occurs at different times in the bankruptcy process based on the type of bankruptcy being filed and the general circumstances of each bankruptcy situation. For example, in cases of Chapter 7 bankruptcy, courts usually grant discharges immediately after the time period to protest a discharge has ended. For Chapter 11, on the other hand, discharges are typically granted when the debtor pays back all debts under the payment plan.

Although the timing of the discharge varies from bankruptcy to bankruptcy, the process does not. Regardless of the type of bankruptcy, debtors receive discharges as soon as the required conditions are met. When the discharge is implemented, both the debtor and the credit receive a copy of a discharge notice, saying that the debtor no longer owes certain debts. Moreover, the creditor is no longer legally permitted to try to gain back those discharged debts in any way.

There are two important things to keep in mind in regards to bankruptcy discharges. One is that creditors can request the cancellation of discharges by following certain guidelines. Second is that if the creditor has a lien on the debtor’s property, then the creditor can use the lien to secure some damages.

If you are considering bankruptcy, there are a lot of avenues like bankruptcy discharges that can be used to your advantage. Having an attorney can help in the process of filing a bankruptcy because attorneys know the ins and outs of bankruptcy law and procedure.

Contact the South Florida Bankruptcy Attorney

If you are considering bankruptcy in Florida, contact the South Florida bankruptcy lawyers of Eric N. Klein & Associates, P.A. by calling 561-353-2800.