What does it mean when there is a discharge in your personal bankruptcy case? It means that you are no longer legally required to pay any debts which are specified in the discharge. The discharge is a permanent order prohibiting your creditors from taking any action to collect on discharged debts. Discharged creditors may not make any attempt to communicate with you. If there are any liens on your property that could not be avoided in your personal bankruptcy case a secured creditor may take the steps necessary to recover the property secured by the lien.

When the discharge occurs depends on which chapter you have filed. In a Chapter 7 case, the court will often grant the discharge immediately after the fixed time for filing any objections to a discharge and for filing a motion to dismiss the case based on substantial abuse has expired. This usually will occur approximately four months after the date you filed your petition with the clerk of the bankruptcy court. In a Chapter 11, Chapter 12, and Chapter 13 case the court will grant the discharge as soon as possible after you complete all payments under your bankruptcy plan. Since a Chapter 13 or Chapter 12 plan may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing.

Be aware that the court may deny your discharge in a Chapter 7 or Chapter 13 case if you fail to complete a financial management course. The Bankruptcy Code provides an exception to the requirement to take a financial management course if:

• the U.S. trustee or bankruptcy administrator determines there are no adequate educational programs available to you,
• you are disabled,
• you are incapacitated, or
• you are on active duty in a combat zone.

Please feel free to contact me with any questions.

Kevin D. Heupel, Colorado personal bankruptcy lawyer, 303-955-7570, Colorado Bankruptcy Help Email, personal bankruptcy free-consultation form