When you file for Chapter 7 bankruptcy and that filing is approved, you will receive a bankruptcy discharge date. After that day, you will no longer be personally liable for certain debts. This means creditors for those debts can no longer approach you trying to get them repaid. They cannot contact you by phone, mail or electronically.
There are several different types of bankruptcies. When you file for Chapter 7, which involves liquidating your assets, it generally takes about four months for the bankruptcy discharge to come through. What happens after that? Here’s a look at what else you can expect following your Chapter 7 bankruptcy discharge.
Going Forward After a Bankruptcy Discharge
Chapter 7 bankruptcy discharges are granted to help debtors move forward. The aim is to give you the best possible chance to get out of debt and get on with your life — to leave behind the problems that landed you in dire financial straits. It’s important to keep in mind, though, that property liens are not included in a bankruptcy discharge.
The discharge can also be subject to numerous other exceptions, too, which is why the federal courts where bankruptcy papers are filed recommend consulting a Chapter 7 lawyer to get advice about how to ensure you do everything correctly. There are 19 categories of debt that will not be included under the discharge.
Your discharge will be granted automatically. A clerk will send a copy of the discharge order to all creditors as well as trustees involved in the case. Should the debtor lose their copy of the discharge, they can obtain another from the court.
In certain rare circumstances, a court may revoke a Chapter 7 discharge. This may occur if:
- The debtor commits an act of impropriety violating the bankruptcy code.
- The court can prove the debtor received the discharge fraudulently.
- The debtor cannot produce documentation requested in an audit.
To learn more about a Chapter 7 bankruptcy discharge, get in touch with us today.