Bankruptcy Discharge

Although the bankruptcy discharge papers may not look like much (see below for a sample), just about anyone who files bankruptcy can attest to the relief that they feel when the open their mailbox to find it inside.

Keep reading to find out why it's so important...

A Chapter 7 bankruptcy discharge legally releases the person who files bankruptcy from paying certain debts. Not all debts are discharged in a bankruptcy proceeding.

It also prohibits creditors from trying to collect discharged debts. That's right - no telephone calls, no collection letters, no garnishments. When a debt is discharged in bankruptcy, it's history! Well, almost history - the fact that it was discharged will hang around on a person's credit report for several years.

So, exactly how long does it take after a person files Chapter 7 bankruptcy before the much-anticipated discharge is received? Generally speaking, it's about four months. However, there are circumstances that may delay receipt.

After receiving the bankruptcy discharge papers, it's important to put them in a safe place. It's also a good idea to make a few copies. Copies may be needed when trying to fix any errors or omissions on a credit report, as well as proof for any creditors that try to pursue a discharged debt. However, it is possible to get another copy from the Court if the original is lost.

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