Filing for bankruptcy can relieve financial stress and give debtors a fresh, new start – but what many debtors do not realize is that the obligation to one’s creditor remains in effect until the debts are legally discharged. What is a bankruptcy discharge, when does it occur, and is there anything that debtors can do to expedite the process? The following information explains, and it describes where you can find assistance for your Illinois bankruptcy case.
What is a Bankruptcy Discharge?
A discharge in bankruptcy is a legal and permanent order that releases the debtor from any further obligation to the creditor. It also prohibits the creditor from contacting the debtor (i.e., email, phone, mail, or in-person) and they can no longer use legal actions to collect the debt (i.e., wage garnishment, intercepting tax refunds, etc.). It is important to note that discharge does not stop a creditor from repossessing or recover property with a valid lien (i.e., homes, vehicles, etc.). Some debtors may be permitted to work out an arrangement with their creditors to keep an asset. Others may be permitted to keep certain exempt assets. An experienced attorney can help determine if you may be eligible for either of these options.