How And When A Discharge Occurs In Bankruptcy
When a person becomes so overwhelmed with financial obligations that they do not know what to do, they might turn to a bankruptcy attorney for help. A bankruptcy lawyer analyzes and reviews the person's financial situation before providing bankruptcy advice. The goal of bankruptcy is to help a person overcome these debt issues. Bankruptcy helps in several ways, and one way is through a discharge. What is a discharge, and when and how does it occur? Here is some information to help you learn these answers.
What Is a Discharge?
A discharge is one of the perks of bankruptcy, but it works in different ways based on the branch you use. Chapter 7 is one option you can use, but Chapter 13 is another option. If you receive a discharge through either branch, it means that you receive forgiveness of your debt. In a typical bankruptcy case, a person will not receive a discharge on 100% of the debts they owe, but they will receive it on a portion of them. Your attorney can help you see how much your discharge might be and which debts it covers. You should aim to find this out before filing, as it can help you decide if you should file. When you receive this forgiveness, it means that you are no longer responsible for the debts included in it.
When Does It Occur?
Receiving a discharge is extremely common in a Chapter 7 case, but it can also occur in a Chapter 13 case. The difference is when each branch offers the discharge. In a Chapter 7 case, you will receive it within a few months or so after filing, as Chapter 7 cases do not take as long. In a Chapter 13 case, you will not receive a discharge until you complete the entire repayment plan.
How Does It Occur and How Does It Help You?
In either case, a discharge occurs when the bankruptcy trustee verifies all the details of the case and ensures that you meet the criteria. When this happens, the trustee orders a discharge. You will receive a letter in the mail that tells you about the discharge when it occurs.
Are you interested in finding out if bankruptcy is right for you? The best way to do this is by meeting with an attorney that offers bankruptcy services. To learn more information about bankruptcy, reach out to a company such as Harold S. Entes Esq.
