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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

WHAT CAN THE DEBTOR DO IF A CREDITOR ATTEMPTS TO COLLECT A DISCHARGED DEBT AFTER THE CASE IS CONCLUDED?

If a creditor attempts collection efforts on a discharged debt, the debtor can file a motion with the court, reporting the action and asking that the case be reopened to address the matter. The bankruptcy court will often do so to ensure that the discharge is not violated. The discharge constitutes a permanent statutory injunction prohibiting creditors from taking any action, including the filing of a lawsuit, designed to collect a discharged debt. A creditor can be sanctioned by the court for violating the discharge injunction. The normal sanction for violating the discharge injunction is civil contempt, which is often punishable by a fine.