What is a “discharge” in bankruptcy?
One of the primary goals of an individual filing for a bankruptcy case in Phoenix, Arizona or Tucson, AZ is to obtain relief from all of the burdensome debt. The relief provided by filing for a Chapter 7 or Chapter 13 bankruptcy is attained through the bankruptcy discharge, the purpose of which is to provide a “fresh start” to the honest debtor.
A “discharge” in the bankruptcy world means that you are now legally free from paying certain debts. This means that the creditors will no longer have a right to collect the money that was once owed to them. This is not a temporary but a permanent order prohibiting your creditors from taking any additional action to collect on the debts that you once owed them. They creditors can no longer: call you, send threatening letters, or badger you in any way as you have no further debt obligation to them.
When you get your bankruptcy discharge depends on which chapter of bankruptcy you are filing. When filing Chapter 7 bankruptcy in Phoenix Arizona or Tucson, AZ, a bankruptcy discharge occurs relatively early. In an Arizona Chapter 13 bankruptcy filing it may not. In a Chapter 7 you will normally receive the discharge within a few months after your petition is filed. This is different from a Chapter 13 bankruptcy because the discharge in a Chapter 13 bankruptcy doesn’t typically occur until you are finished with your payments that you are obligated to make under your Chapter 13 bankruptcy repayment plan. Your Chapter 13 repayment plan in Phoenix Arizona or Tucson, AZ, is a 3 to 5 year process. Once you have completed your payments, then you will receive your bankruptcy “discharge”.
If you have any questions about what a bankruptcy discharge is or if you have been bothered by any creditors after you have received your bankruptcy discharge, you should contact a Phoenix, Tucson, Arizona bankruptcy lawyer for assistance. At The My AZ Lawyers, PLLC, we want to help you with your bankruptcy needs, be it Chapter 13 Bankruptcy Questions, Chapter 7 Bankruptcy Questions, or questions regarding your bankruptcy discharge. To receive further assistance, just complete our free bankruptcy case evaluation form or call (480) 263-1699 in Phoenix, Arizona or (520) 306-8729 in Tucson, AZ.