The whole idea of bankruptcy is premised upon an equalization of the playing field and giving the debtor a “fresh start.”
The Fresh Start is created by the impact of the bankruptcy discharge.
A bankruptcy discharge is a Federal Court Order that declares that you are no longer obligated on the debt you owed at the time the discharge is granted. The legal impact of the discharge is the same as if you paid the debt in full. You no longer owe it.
In a Chapter 7 bankruptcy case the discharge is normally granted in approximately four months after the case is filed. Sometimes it can take longer depending on where you file your case. If you live in Knoxville, Sevierville, Maryville or Jefferson City and file your bankruptcy case in Knoxville, then your discharge will be granted in approximately 4 months after filing your case.
Understand that not every debt is dischargeable. The 5 kinds of debt that are applicable to most debtors for which no discharge will be granted are:
- Student Loans
- Taxes less than 3 years old
- Damages arising from a DUI, including fines or penalties
- Debts arising from a domestic order, including child support and alimony
- Debts arising from fraud
The exceptions from discharge are a complicated area of bankruptcy law. That’s why you need to have an experienced bankruptcy attorney assist you.