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Excerpts from
Bankruptcy Basics
A Public Information Series of the Bankruptcy Judges Division
Administrative Office of the United States Courts
APRIL 2004
Revised Second Edition

Contents

Introduction

The Discharge in Bankruptcy

What is a discharge in bankruptcy?

When does the discharge occur?

How does the debtor get a discharge?

Are all the debtor's debts discharged or only some?

Does the debtor have a right to a discharge or can creditors object to the discharge?

Can the debtor receive a second discharge in a later chapter 7 case?

Can the discharge be revoked?

May the debtor pay a discharged debt after the bankruptcy case has been concluded?

What can the debtor do if a creditor attempts to collect a discharged debt after the case is concluded?

May an employer terminate a debtor's employment solely because the person was a debtor or failed to repay a discharged debt?

Chapter 7. Liquidation Under the Bankruptcy Code

Chapter 13. Individual Debt Adjustment

Chapter 11. Reorganization Under the Bankruptcy Code

Chapter 12. Family Farmer Bankruptcy

Chapter 9. Municipality Bankruptcy

SIPA. Securities Investor Protection Act

Bankruptcy Terminology


HOW DOES THE DEBTOR GET A DISCHARGE?

Unless there is litigation involving objections to the discharge, the debtor will automatically receive a discharge. The Federal Rules of Bankruptcy Procedure provide for the clerk of the bankruptcy court to mail a copy of the order of discharge to all creditors, the United States trustee, the trustee in the case, and the trustee's attorney, if any. The debtor and the debtor's attorney also receive copies of the discharge order. The notice, which is simply a copy of the final order of discharge, is not specific as to those debts deter- mined by the court to be non-dischargeable, i.e., not covered by the discharge. The notice informs creditors generally that the debts owed to them have been discharged and that they should not attempt any further collection. They are cautioned in the notice that continuing collection efforts could subject them to punishment for contempt. Any inadvertent failure on the part of the clerk to send the debtor or any creditor a copy of the discharge order promptly within the time required by the rules does not affect the validity of the order granting the discharge.