A Fresh Financial Start – The Bankruptcy Discharge
A fundamental goal of bankruptcy is to give debtors a financial “fresh start” from burdensome debts. The Supreme Court articulated this point in a 1934 decision where it said that:
“[Bankruptcy] gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”
Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934).
This goal of a “fresh start” is realized through the bankruptcy discharge, which releases debtors from personal liability for specific debts and prohibits creditors from taking any action against the debtor to collect those debts.
Individual debtors receive a discharge in more than 99 percent of chapter 7 cases. Generally, unless someone files a complaint objecting to the discharge or a motion to extend the time to object, the bankruptcy court will issue a discharge within 60 to 90 days after the date first set for the meeting of creditors.
An individual receives a discharge for most of his or her debts in a chapter 7 bankruptcy case. However, not all debts are discharged. Debts not discharged include debts for alimony and child support, certain taxes and student loans. The debtor will continue to be liable for these types of debts.
If you have questions or concerns about how to receive a financial fresh start through bankruptcy, we urge you to contact The Law Offices of Robert J. Nahoum, P.C. today by calling 845-232-0202.
This Law Offices of Robert J. Nahoum, P.C. is a Debt Relief Agency. We assist individuals to become debt free through Bankruptcy.