A bankruptcy discharge is a court order issued at the end of a Chapter 7 or Chapter 13 case that relieves you from your obligation to pay a debt. Once a debt has been discharged, the creditor is prohibited from taking collection action on that debt every again. That includes calling, sending letters, or suing over the debt.
Debts that are likely to be discharged in bankruptcy include credit card debts, medical bills, lawsuit judgments, personal loans, and other unsecured debts.
Certain debts can’t be discharge including child support, alimony, certain fines and penalties resulting from criminal activity, certain taxes, court costs, debts from a DUI, condo fees, retirement plan loans, and debts not discharged in a previous bankruptcy. It is extremely difficult and close to impossible to discharge student loans in bankruptcy.
