When the bankruptcy is complete, there is a discharge of the debtor’s obligations to the creditors.  The debtor is forgiven of their obligation to most of the creditors that were listed in the bankruptcy.  The automatic stay will become a permanent injunction that prohibits any creditors from collecting on any debt that was listed in the bankruptcy.

What Happens In A Chapter 7 BK Case

In a chapter 7 bankruptcy case a person, the court will usually enter an order of discharge approximately 120 days after the original petition was filed with the court.

What Happens in A Chapter BK 13 Case

In a Chapter 13 Bankruptcy the discharge is entered is entered only after the reorganization has been completed.

What Does Discharge Mean?

Once a debtor gets a discharge the automatic stay will become a permanent injunction that will prohibit the any creditor from attempting to collect on those specific debts.  If the debtor gets new debts after filing the Bankruptcy, these would not be part of the plan and subject to collection by the creditor.

What Happens If A Creditor Doesn’t Honor The Discharge?

You will have to go back to court if a creditor that was named in the bankruptcy is still trying to collect from you.  The bankruptcy protection should continue even after the bankruptcy has been discharged.

What Kind Of Debts Can’t Be Discharged In A Bankruptcy?

You cannot have alimony, child support, DUI, Taxes, fines and penalties discharged in a bankruptcy proceeding.  If you want to keep your car or other secured debt, you will need to continue to make payments as determined by the court still to the creditor.

This information is of general interest and should not be considered legal advice.  Should you need legal advice seek the services of an attorney.