A discharge is a court order that says you do not have to repay your dischargeable debts, and ordering your creditors not to attempt to collect them from you. The filing of a bankruptcy petition is designed to result in a discharge of most of the debts you listed on your bankruptcy schedules. However, there are a number of debts which may not be discharged in your bankruptcy case. In addition, your discharge may be denied entirely if you, for example, destroy or conceal property, destroy, conceal or falsify records, or make a false oath. Creditors cannot ask you to pay any debts which have been discharged. You can only receive a chapter 7 discharge once every six years. Some persons are not eligible for a chapter 7 discharge.

What are the Potential Effects of a Discharge?

The fact that you filed bankruptcy can appear on your credit report for as long as 10 years after the discharge is granted. It will usually worsen your credit rating, if that is possible. Thus, filing a bankruptcy petition may affect your ability to obtain credit in the future. However, some lending institutions actively solicit business from individuals who have recently filed under chapter 7, probably because it will be at least six years before they can again file under chapter 7. Also, you may not be excused from repaying any debts that were not listed on your bankruptcy schedules or that you incurred after you filed bankruptcy.

What debts are not dischargeable under chapter 7?

The most common debts that are not dischargeable under chapter 7 include, for example, most taxes, child support, alimony, and student loans, court-ordered fines and restitution, debts obtained through fraud or deception, and personal injury debts caused by driving while intoxicated or taking drugs. Also, you may not be excused from repaying any debts that were not listed on your bankruptcy schedules or that you incurred after you filed bankruptcy.

How long does a chapter 7 case last?

A chapter 7 case begins with the filing of the case and ends with the closing of the case by the court. The vast majority of chapter 7 cases are closed about four months after the case is filed. If the debtor has nonexempt assets for the trustee to collect, the length of the case will depend on how long it takes the trustee to collect the assets and perform his or her other duties in the case. Most consumer cases with assets last about six months, but some last considerably longer.

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