What Is a Discharge?
Discharge of debts is one of a debtor’s goals in a bankruptcy filing. Unless a specific unsecured debt is a non-dischargeable debt (most taxes, student loans, support obligations) or is determined to be non-dischargeable by the court, the debtor will be legally excused from paying that debt once the Court enters the discharge order. A discharge order operates as a permanent court order prohibiting the collection of any dischargeable pre-petition debt. Secured debt must be paid in order to retain the collateral involved, but personal liability for secured debt will also end at the entry of discharge.
Certain debts are not covered by the debtor’s discharge, including alimony, child support, student loans, criminal fines and restitution, and debts from drunk driving violations. If a debt is non-dischargeable, legal collection activity can resume regarding the debt after the case is over.