Debtors who file for bankruptcy have the goal of obtaining a discharge of debt. But what does a “discharge” actually mean? The discharge of your debt is a court order that legally eliminates your obligation to pay the majority of the debts included in your bankruptcy case. This debt relief is the reason bankruptcy is often referred to as a financial “fresh start.”
Whether you file a Chapter 7 or a Chapter 13, the court requires you to disclose all of your debts, creditors, income and other financial information. You must list the debt and the creditor in your filing in order for it to be discharged. The court will assemble a “creditor matrix” which is the list of everyone who will receive notice of your filing. The individuals and entities that receive notice will be bound by the discharge order when it is entered by the court.
What does the discharge order do? It is a mandate from the court prohibiting creditors from contacting you concerning the discharged debt. It bars any collection activity, including demand letters, telephone calls, lawsuits and other similar actions. If a creditor continues to attempt to collect the discharged debt, the court can hold that creditor liable for damages or even impose sanctions or fines.
If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call DeLadurantey Law Office, LLC, at (414) 377-0518. We serve clients primarily in the areas of Chapter 7 and Chapter 13 bankruptcies, debt negotiations and defending foreclosure actions. If you live in the area of Milwaukee, Wisconsin, call us for the debt relief assistance you need.