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Chapter 7 Bankruptcy Discharge, How Does It Work?

On Behalf of | Feb 12, 2017 | Chapter 7 bankruptcy

Ohio residents who are facing significant monetary struggles may be able to file for bankruptcy in order to get the fresh financial starts that they desire. For those who qualify for Chapter 7 bankruptcy filings in particular, all qualifying debts are eligible for discharge if they receive court approval.

It is normal, when thinking about filing for bankruptcy, to have questions about the process and what it can do for you. One of the most commonly asked questions specific to Chapter 7 filings is: how does discharge work?

Discharge meaning

What does it mean to have debts discharged in bankruptcy? If your Chapter 7 bankruptcy petition receives court approval, resulting in the discharging of your debts, it means that you are no longer legally responsible to pay those debts back. Creditors will no longer have the right to make contact with you with the purpose of collecting these debts.

How soon after bankruptcy approval does the discharge take effect?

With a Chapter 7 filing, discharge becomes active as soon as the creditor’s window to object to the filing closes. Creditors generally have 60 days to object after a bankruptcy case begins.

Are there any debts that cannot be discharged through bankruptcy?

Yes. There are several types of debts that are not dischargeable through a bankruptcy filing. A few of these are:

  • Child support payments
  • Spousal support payments
  • Loans for education
  • Court ordered fines
  • Court ordered restitution

What happens if creditors continue to harass me after bankruptcy approval?

Unfortunately, this is an issue that some will face. Bankruptcy should put an end to creditor harassment, but there are those who will try to collect even though laws are in place to prevent such action.

If your bankruptcy receives approval and you still find yourself victim to creditor harassment, you have the right to inform the court. In doing so, the court can open an investigation into the matter and review the situation. If the court determines that creditors are violating the terms of the bankruptcy agreement, they may be held in contempt and have to pay fines.

An attorney can answer your bankruptcy questions

There is a lot about Chapter 7 bankruptcy that can be confusing. An experienced attorney can provide information specific to your case and answer all of your questions.

Numerous Ohio residents are facing significant financial difficulties that they are struggling to overcome on their own. If you find yourself in such a situation, it is okay to look into all relief options that may be available to you. An experienced bankruptcy attorney can review your case and assist you in pursuing the best course of action for your specific circumstances.