STEP 6- Discharge of Debt

Financial Management Certificate
After your 341 meeting, you are required to complete a financial management course within 60 days (Chapter 7 bankruptcy) or before the end of your repayment plan (Chapter 13 bankruptcy) in order to received a discharge. This course is designed to offer you guidance regarding budgeting and money management. This course will last about 2 hours and can be taken online.

Notice of Discharge
You have reached the end of the bankrutpcy process! A bankrutpcy case usually closes about 60 days after your 341a Meeting with a discharge of debt. A bankruptcy discharge releases you from personal liability for certain specified types of debts. In other words, you are no longer legally required to pay any debts that are discharged. This discharge is permanent and prohibits creditors from taking any form of collections action, such as legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.

What Types of Debts Can be Discharged?

  • Credit cards
  • Revolving cards
  • Store cards
  • Personal loans
  • Installment loans
  • Medical bills
  • Secured loans such as car loan or boat loan
  • Mortgages and home equity loans (if you do not wish to keep your house. Read our FAQ – you can fight to keep your house)
  • Judgments based on the above types of debts
  • Tax debt if all IRS conditions have been met

You creditors have the opportunity to seek fo repayment of all or a portion of your debt. Finding a resolution to eliminate as much debt as possible under a bankrutpcy filing requires skillful strategies. It is important to speak to an experienced bankrutpcy attorney who can negoitate the best possible outcome.

Receiving a discharge of debt is something to you should celebrate. After the bankrutpcy process, you can relax knowing your debts have beeen discharged. You can rebuild and restart with a clean slate. Read more about your Life After Bankruptcy.