Blonch

A debtor who has received a discharge may voluntarily repay any discharged debt. A governmental unit or private employer may not discriminate against a person solely because the person was a debtor, was insolvent before or during the case, or has not paid a debt that was discharged in the case. If a creditor attempts collection efforts on a discharged debt, the debtor can file a motion with the court, reporting the action and asking that the case be reopened to address the matter. The bankruptcy court will often do so to ensure that the discharge is not violated.

A governmental unit or private employer may not discriminate against a person solely because the person was a debtor, was insolvent before or during the case, or has not paid a debt that was discharged in the case. 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 United States 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.

Under the federal bankruptcy statute, a discharge is a release of the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer required by law to pay any debts that are discharged. Not all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code.

From an individual debtor’s standpoint, a primary goal of filing a bankruptcy case is to obtain relief from burdensome debt. Relief is attained through the bankruptcy discharge, the purpose of which is to provide a “fresh start” to the honest debtor. The bankruptcy discharge varies depending on the type of case a debtor files: chapter 7, 11, 12, or 13.

A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial “fresh start” from burdensome debts. There is a federal bankruptcy court for each judicial district in the country. Much of the bankruptcy process is administrative, however, and is conducted away from the courthouse. Usually, the only formal proceeding at which a debtor must appear is the meeting of creditors, which is usually held at the offices of the United States trustee.

While the prospect of eliminating all of your debt can be very appealing, bankruptcy isn’t the “easy way out.” I am not talking about the change in eligibility rules making it more difficult to qualify for liquidation under Chapter 7 personal bankruptcy. I mean the process isn’t easy and it isn’t easy on you. I had a good bankruptcy attorney, and she gave me the information I needed to make decisions at each step. She made it as painless as she could. It’s just still hard. And lasting for months doesn’t seem all that quick when you are going through it. It is certainly worth exploring all of the alternatives before choosing bankruptcy.

Bankruptcy is not a fun process and it obviously applies when life is not going your way and there is a lot of stress. However, it is a right you have and, if done properly, will provide you with some financial relief. The key is that it must be done properly and strictly in accordance [...]