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What is a Discharge in Chapter 7 Bankruptcy Cases?

The essential goal for Chapter 7 bankruptcy debtors is to wipe away past indebtedness so as to get a fresh start in handling one’s financial affairs. Technically speaking, the debtor will reach this juncture in his or her Chapter 7 bankruptcy case when certain specific debts are discharged. So what is a discharge in Chapter 7 bankruptcy cases?


The discharge is the order from the bankruptcy judge declaring the debtor no longer owes specified creditors the amounts they had previously claimed were due.   The discharge will be granted approximately 70 to 80 days after the section 341 meeting of creditors unless creditors or the Chapter 7 Trustee file an objection to discharge within 60 days after the 341 meeting.


(It is important to note that some debts do not get discharged in these cases. These include child support, alimony, most tax debts, and student loans, unless the court rules otherwise as well as debts that the court has declared non-dischargeable because the creditor objected, for example, to debts incurred by the debtor’s fraud or by malicious acts).   


After the debts are discharged, the Chapter 7 bankruptcy case normally comes to an end. The order of discharge can be used as an instrument to stop creditors who seek, after the termination of the case, to recover debts that were discharged during the bankruptcy case. Such creditors may expose themselves to liability should they attempt to so collect  debts that were discharged.


In Albuquerque, Giddens & Gatton Law, P.C. has bankruptcy attorneys who offer expert handling of Chapter 7, Chapter 11, Chapter 12 and Chapter 13 bankruptcy cases and can specifically provide advice as to disposition of property in Chapter 7, Chapter 11 and Chapter 13 cases..

The New Mexico firm represents many debtors and creditors in Albuquerque, Santa Fe, Taos, Raton, Farmington, Gallup, Grants, Roswell, Los Lunas, Placitas, Belen and the rest of New Mexico. Contact Giddens & Gatton Law, P.C. at (505) 633-6298 to set up an appointment or visit the firm’s website at Giddens & Gatton Law, P.C. is located at 10400 Academy Road N.E., Suite 350 in Albuquerque, New Mexico.       


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