Bankruptcy Discharge

Category: legal

The permanent federal court order that releases a debtor from personal liability for specific types of debts.

The discharge is the "clean slate." Once issued, it creates a permanent injunction prohibiting creditors from ever attempting to collect the discharged debt again. If a creditor tries to collect a discharged debt years later, they can be sued for severe sanctions.

Common Examples

• Receiving the official bankruptcy discharge meant the medical bills and credit card debts were legally erased forever.
• The court can revoke a bankruptcy discharge if they later discover the debtor hid assets or lied under oath during the creditor meetings.