Bankruptcy basics
The bankruptcy discharge
The court order that eliminates debts: what it does, what it leaves in place, and how it can be challenged.
What it is
The discharge is a federal court order that eliminates debts
The bankruptcy judge enters it.
What the order does
It cancels your personal liability on the discharged debts.
It also bars your creditors from collecting those debts, permanently.
The two chapters
Chapter 7 and Chapter 13 each have their own discharge. The Chapter 13 discharge covers more kinds of debt.
What stays
Debts that are not discharged
Chapter 7 discharges most consumer debts. These are the common ones it does not. We check yours before you file.
Domestic support obligations
Child support, alimony or maintenance, and other support obligations from a divorce.
Certain unpaid taxes
Trust fund taxes, such as payroll taxes, and income taxes recently due or assessed. Tax debt takes a careful analysis.
Criminal and civil fines
Criminal fines and restitution. Civil fines: parking tickets, tollway violations, red light and speed camera tickets.
What Chapter 13 adds
Chapter 13 discharges everything Chapter 7 does and more, including civil fines and property settlement obligations from a divorce.
Repeat filings
The wait between discharges
Each period runs from the date the earlier case was filed, and counts only if you received a discharge in it.
For a Chapter 7 discharge
- 8 years after an earlier Chapter 7.
- 6 years after an earlier Chapter 13.
For a Chapter 13 discharge
- 4 years after an earlier Chapter 7.
- 2 years after an earlier Chapter 13.
Challenges
A discharge can be denied, revoked or challenged one debt at a time
Filing a case is a right. The discharge is closer to a privilege: a party can object to it. I ask about your property, records and recent spending before you file.
Denial of a Chapter 7 discharge
A creditor, the trustee or the U.S. Trustee can object. Common grounds:
- Transferring, destroying or hiding assets to keep them from creditors, within 1 year before filing or during the case.
- Failing to keep adequate financial records, or destroying them.
- False statements under oath, or withholding information or property.
- Failing to adequately explain a loss of assets.
Debts covered by a denial cannot be discharged in a later case.
Fraud in a Chapter 13 case
If fraud is discovered, the court will not confirm the plan and may dismiss the case. The U.S. Trustee can refer it for criminal prosecution.
Revocation after the discharge is granted
In either chapter, a discharge can be revoked if it was obtained through fraud discovered only afterward.
A creditor's objection to one debt
In either chapter, a creditor can object to the discharge of the debt you owe it. If it succeeds, you remain liable for that debt. Common objections:
- Money, property, services or credit obtained through false pretenses, a false representation or actual fraud.
- A materially false written statement about your finances, made to deceive, that the creditor relied on.
- Luxury purchases or cash advances over a set amount shortly before filing, presumed fraudulent.
- Willful and malicious injury to a person or to property.
More bankruptcy basics
We go through your debts with you at a consultation
Consumer cases start with a free consultation by phone, Zoom or in person, with a consultation agreement signed first. If you leave a message, please leave only your name and number.
This page is general information, not advice about your case.