discharge in bankruptcy

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discharge in bankruptcy

n. an order given by the bankruptcy judge, at the conclusion of all legal steps in processing a bankrupt person's assets and debts, which forgives those remaining debts which cannot be paid, with certain exceptions. Debts for fraudulent or illegal actions, alimony and child support and taxes are not dischargeable and remain owed (but often not collectable if the bankrupt person has nothing). A discharge in bankruptcy is bad news for unsecured creditors. (See: bankruptcy)

References in periodicals archive ?
Late-Filed Form 1040 Not a Tax Return for Bankruptcy Discharge Exception
Drain of the federal bankruptcy court in White Plains said in one opinion that debt buyers know that a bank "will refuse to correct the credit report to reflect the obligor's bankruptcy discharge, which means that the debtor will feel significant added pressure to obtain a 'clean' report by paying the debt,'' according to court documents.
Per the settlement the woman, Maria Seedorff, is entitled to receive a bankruptcy discharge of up to $325,000.
His bankruptcy discharge was denied because the judge found that he had systematically hidden assets from his creditors.
The Consumer Financial Protection Bureau (CFPB) has also raised concerns surrounding the private student loan industry in its 2012 report, in which the CFPB recommended potential changes for the treatment of private student loans in bankruptcy proceedings: “The absence of consumer protections on private loans comparable to that available on Federal student loans, combined with the current restriction on bankruptcy discharge, leave those private student loan borrowers who face extreme financial distress with no last resort for economic relief, even in dire circumstances, such as borrower death on cosigned loans.
Lalonde (111) and Re Moratorium Act (112) made significant contributions about the purpose of the bankruptcy discharge.
2003) (summarizing requirements for Chapter 13 bankruptcy discharge, but recognizing general non-dischargeability of student loans).
A taxpayer who does not comply with IRC [section] 6020(a) when filing late tax returns could lose the benefit of a bankruptcy discharge of taxes due on those returns.
But we can disclose the Insolvency Service has secretly won a legal bid to have the 28-year-old's bankruptcy discharge suspended indefinitely.
However, the Insolvency Service won a suit on July 14 under which the former Atomic Kitten's bankruptcy discharge was "suspended indefinitely".
If it is, they could lose both the property and their right to a bankruptcy discharge.
If they refuse to stop their collection actions, seek relief for violating the bankruptcy discharge and for violating the Fair Debt Collection Practices Act.
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