DEBT DISCHARGE

Debt discharge releases the debtor from personal liability for certain types of debts. The debtor is no longer legally required to pay any debts that are discharged under a permanent order prohibiting the creditors from taking collection actions on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and harassments.

Although a debtor is not personally liable for discharged debts, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the property secured by the lien.

 Debt discharge is the cancellation of a debt due to bankruptcy. When a debt is discharged, the debtor is no longer liable for it and the lender is no longer allowed to make attempts to collect it. Not all debts qualify for discharge in bankruptcy. Alimony and student loans survive the proceedings and remain collectable, and judges can deny a debt's discharge in a bankruptcy under certain conditions.