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 ?
amp;nbsp; Bankruptcy Discharge Publication Notice Due Process Where an employer sued by the widow of an employee, who allegedly died due to benzene exposure while working, argued that a jury verdict against it for compensatory damages awarded in the widows lawsuit was discharged in its bankruptcy, the claim arose before the confirmation of the employers bankruptcy plan and no proof of claim was filed, so the judgment is vacated and remanded because the employers notice by publication satisfied due process Vacated; remanded.
The bankruptcy discharge releases the debtor's personal obligation, their "in personam" liability to pay the debts.
The simple rule of thumb for a bankruptcy discharge of a tax debt is a chronological test: If the bankruptcy petition is filed more than three years after tax assessments, the tax should be discharged.
The latter, initiated at a moment when PSLs were certainly dischargeable in bankruptcy, apparently comprised within their cost a superior risk premium (Nica and Potcovaru, 2015) to reimburse lenders for the unrestricted convenience of the bankruptcy discharge.
12) Student loan debt is considered an "exception" to conventional bankruptcy discharge, and students seeking to discharge traditional student loan obligations are permitted to do so only under limited circumstances.
Conway received her Chapter 7 bankruptcy discharge in 2010, but the discharge did not include any of her outstanding student loan debt.
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.
His bankruptcy discharge was denied because the judge found that he had systematically hidden assets from his creditors.
For individuals, the final stage of the bankruptcy proceeding is the bankruptcy discharge.
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.
Pulaski said that the earnings release and conference call are being postponed for approximately one week to allow the company additional time to review the implementation of a recent industry-wide clarification issued by the Office of the Comptroller of the Currency regarding mortgage and consumer loans subject to bankruptcy discharge.
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