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How does discharge work in a Chapter 7 bankruptcy case?

If you are considering filing for personal bankruptcy you have likely looked into a Chapter 7 bankruptcy. A Chapter 7 petition for relief through bankruptcy takes many steps, including discharge.

What is discharge? Discharge is defined by the United States Courts as the process that "releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor."

Essentially, this means the debt is forgiven.

What is Chapter 7 bankruptcy?

The term bankruptcy is likely a familiar one, but did you know that there are many different types of bankruptcy? One of the more common types used for individuals is Chapter 7. The following provides more information on this type of bankruptcy:

  • Defined. Chapter 7 bankruptcy involves the discharge of qualifying debt. Examples can include credit card debt and medical debt. Once discharged, the individual that is granted relief through a successful petition for bankruptcy is no longer liable for the discharged debt.

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