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discharge in bankruptcy

   Also found in: Financial, Wikipedia 0.03 sec.

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)



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Such a right is not a claim in bankruptcy and, as such, is not subject to discharge in bankruptcy.
This is to ensure that you are aware of the potential consequences of seeking a discharge in bankruptcy such as the effect on your credit history, the ability to file a petition under a different chapter, the effect of receiving a discharge, and the effect of reaffirming a debt.
Accordingly, a defendant in a civil case can have a discharge in bankruptcy as a bona fide defense to a creditor's suit.
 
 
 
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