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Illinois bankruptcy lawyerOne of the most commonly asked questions for people considering bankruptcy is, "what is a bankruptcy discharge?" A bankruptcy discharge is a court order that makes previously charged debts permanently unenforceable, effectively wiping the slate clean. The debtor becomes no longer responsible for the payment. As an additional benefit, all harassing calls, letters, and other forms of communication from creditors attempting to collect the money must stop. If collection attempts continue, creditors risk being in held in contempt of court and face potential punishments.

Are All of My Bills Dischargeable?

Not all debts discharge. Some obligations remain valid even after the completion of the bankruptcy process. Eligibility for payment discharge depends on the chosen bankruptcy chapter. Typically, Chapter 13 has a broader range of dischargeable payments. The following expenses are commonly non-dischargeable:


Illinios bankruptcy lawyerThe decision to declare bankruptcy is not easy. Admittedly, the cessation of bill collection attempts looks more appealing each time the phone rings, however, filing for bankruptcy has considerable secondary repercussions. Qualification standards and long-term effects may influence your decision when determining if Chapter 7 bankruptcy is the best solution for your situation.

What Is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is often referred to as “liquidation bankruptcy”. It is a relatively quick process, typically completed between four and six months. Brevity appeals to a significant portion of the population, as does the discharge of unsecured debts. Discharge means credit cards, personal loans, and other unsecured debts become permanently unenforceable, never needing repayment. The downside is that you will need to sell many of your non-exempt assets; hence, the name, liquidation bankruptcy.


DuPage County bankruptcy lawyersFiling 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.


Illinois bankruptcy lawyersFiling for bankruptcy can give you a fresh start, a chance to turn your finances around for the better. Unfortunately, there are some debts that cannot be discharged. For example, some people cannot include their student loans in their bankruptcy– but including your student loans in a bankruptcy filing is not impossible. Learn more about how to improve your chances of having your student debts discharged, and how an experienced attorney may be able to help.

Getting Your Student Loan Debt Discharged

Although the bankruptcy code does bar the inclusion of federal aid student loans, it does not explicitly exclude all student loans. In fact, some consumers have won against student money lenders in court by explaining that their student funds were acquired through a private lender. Another strategy to have at least some of your student debts discharged is to examine how the funds were spent. The bankruptcy code states that the funds cannot be included if they were part of the cost of tuition; use of the funds for other items (i.e. a computer that was not required for attendance) related to school may allow for at least a partial discharge.

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