THE BANKRUPTCY DISCHARGE

60-Day Waiting Period

After the Creditors Meeting, there is a 60-day period of time creditors can use to file claims if they believe the debtor has non-exempt assets and to object to such bankruptcy discharge due to fraud, student loans, alimony and child support obligations etc.

Discharge Order

Approximately 60 days after the creditors meeting, the debtor should receive a copy of a court order that discharges his/her debts. The discharge order wipes out your debts and liability to creditors in your bankruptcy. Do not expect to receive your discharge immediately after 60 days. You can call the Bankruptcy Voice Case Information System at (866) 879-1286 for an update on your case.

Discharged Debts

The entry of a discharge order does not affect a secured creditor’s rights in property that you used as collateral to repay the secured creditor. The secured creditor can always repossess the secured property if you do not pay according to your loan agreement. In addition, the discharge order only discharges debts that “are dischargeable.” The order does not eliminate non-dischargeable debts, such as student loans, ineligible tax liability, or loans obtained through fraud or by abuse of the bankruptcy system. The Order of Discharge does not give you a list of specific debts that were discharged; it simply states that dischargeable debts are discharged.

Debts Not Discharged

Enumerated below is a list of non-dischargeable debts under Chapter 7 of  The Bankruptcy Code:

• Debts incurred through fraud or embezzlement;
• Recent income tax liability;
• Education loans / student loans;
• Fines and penalties payable to the government;
• Child support, alimony, and property settlement obligations;
• Debts incurred for the purchase of luxury goods.