To discharge a debt means to legally release you from the obligation to pay it, usually through bankruptcy.
Meaning
To discharge a debt means a court legally cancels your obligation to pay it, usually through bankruptcy.
Chapter 7
Discharges many unsecured debts such as credit cards and medical bills.
Chapter 13
Discharge after a 3 to 5 year payment plan.
Not discharged
Most student loans, child support, alimony and recent taxes.
Credit
Bankruptcy stays on credit reports for 7 to 10 years.
Get advice
From a bankruptcy attorney.
Bankruptcy discharge
A debt discharge is a court order that releases you from personal liability for certain debts, so creditors cannot collect. In Chapter 7 bankruptcy, many unsecured debts such as credit cards and medical bills are discharged after about 3 to 4 months. In Chapter 13, you follow a repayment plan for 3 to 5 years and remaining eligible debts are discharged at the end.
- Debts generally not discharged include most student loans (unless undue hardship is shown), child support, alimony, most tax debts and debts from fraud or DUI injury.
- Secured debts such as a mortgage remain tied to the collateral, so the lender can foreclose if payments stop.
- Chapter 7 stays on credit reports for 10 years and Chapter 13 for 7 years.
Other uses and advice
Discharge also occurs when a lender forgives a debt, which may be taxable income reported on Form 1099-C, with exceptions such as insolvency. Consider credit counseling, which is required before filing bankruptcy. A bankruptcy attorney or legal aid office can advise on options. This is general information, not legal advice.
Bankruptcy discharge
Discharge of debt means a legal release from the obligation to pay. In Chapter 7 bankruptcy most unsecured debt is discharged, typically about 3 to 4 months after filing. Student loans, child support and most taxes are generally not discharged.
Other uses and advice
Debt can be discharged by court order, settlement or statute of limitations rules. Consult a bankruptcy attorney or nonprofit credit counselor.
Meaning in debt
To discharge a debt means the legal obligation to pay is released, usually through bankruptcy. In a Chapter 7 bankruptcy, many unsecured debts such as credit cards and medical bills can be discharged after a process of about 4 to 6 months. Chapter 13 discharges remaining eligible debts after a 3 to 5 year repayment plan.
What is not discharged
Most student loans (unless undue hardship is proven), child support, alimony, certain taxes and debts from fraud typically survive. Secured debts such as mortgages remain tied to the property unless you give it up. A discharge stays on your credit report for 7 years from filing for Chapter 13 and 10 years for Chapter 7. Debtors may also see a discharge of liability from loan forgiveness. A bankruptcy attorney can explain options, and this article is not legal advice.
Based on data from the United States Courts and the Consumer Financial Protection Bureau
