Discharge In Bankruptcy
A bankruptcy discharge varies depending on the type of case a debtor files: chapter 7, 11, 12, or 13. The two chapters applicable to consumers is a Chapter 7 Liquidation and a Chapter 13 Reorganization.
In a Chapter 7, the debtor receives a discharge of all applicable unsecured debt. While you are required to list all of your debt, the Bankruptcy Code dictates what unsecured debt is eligible for discharge.
In a Chapter 13, the debtor follows a repayment plan for 36 to 60 months. At the end of the repayment period any eligible unsecured debt that has not been paid through the plan is discharged.
A bankruptcy discharge is a powerful and complete elimination of unsecured debt. You will not have to repay the debt at some point in the future. Ask our attorneys what debt is eligible if you have any questions or concerns.