If a bankruptcy case is discharged, it means the case is closed and the creditors can no longer try to collect on certain debts such as credit cards, medical bills, and unsecured loans.
The discharge order is an important, permanent legal document that proves you completed your obligations, as outlined in the bankruptcy code, and that you're now entitled to a fresh financial start. If you're contacted by a creditor or collection agency after the debt has been discharged, you may be entitled to damages, as the creditor is violating the discharge order.
While bankruptcy can help in wide variety of situations, certain debts aren’t dischargeable, including:
- Alimony
- Child support
- Most student loans
- Most money owed to the Internal Revenue Service (IRS)
Sometimes debtors voluntarily repay discharged debt, even though it can’t be legally enforced. An example of this would be paying back family members, or an obligation to an individual that the debtor does business with on a regular basis. If there are debts you're really hoping to pay back, you can usually do so after a discharge because more of your income is freed up.
If you're looking to end phone calls from creditors and get rid of debt you can no longer pay, bankruptcy might be the best option for you. Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.