What is a “Discharge” in Bankruptcy?
The whole reason to declare bankruptcy is to obtain a “discharge” of your debts. When your debts have been discharged, they are no longer enforceable against you personally. Once the court has entered a Discharge Order in your case, your creditors can no longer garnish your wages or attempt to collect against debts. In short, a bankruptcy discharge entirely eliminates your personal liability on all discharged debts.
Pass-Through Liens
Although the bankruptcy discharge will eliminate your liability on most debts, the general rule is that “liens” will survive the bankruptcy unaffected. “Liens” include the mortgage on your house, the financing on your car, most tax liens secured against property, and “security interest” collateralized finance agreements.
Permanent Injunction
Once statutory objection periods have elapsed, you will be entitled to receive a bankruptcy discharge. The court will issue a Discharge Order, which is a permanent injunction to creditors against collecting on all discharged debts. Basically, the discharge injunction replaces the Automatic Stay that commences with the bankruptcy filing.
The Discharge Order prohibits creditors from calling you and permanently ends any pending lawsuits or garnishments. Any judgments on debts arising before the bankruptcy was filed are void after the discharge.
Consult a Bankruptcy Lawyer in DC
Achieving the maximum benefit from the bankruptcy discharge should be your main goal for filing bankruptcy in D.C. Consult an experienced bankruptcy attorney in Washington, D.C. to ensure that all of your eligible debts are discharged in your bankruptcy. Call Lee Legal at (202) 448-5136 or visit www.lee-legal.com for more information.