• Home
  • Bankruptcy in Brief
  • ABC’s of Bankruptcy
  • Considering Bankruptcy
  • True Stories
  • Chapter 13
  • Blog
  • About
  • TOC

Northern California Bankruptcy Lawyer

On The Bankruptcy Soapbox

The Soap Box
  • How bankruptcy works
  • Mortgage Matters
  • Consumer Rights
  • You & Your Lawyer
  • Small Business
  • Family Law

Bankruptcy Alphabet: D is for Discharge

By Cathy Moran

“D” is for discharge in my bankruptcy alphabet.

Getting a discharge of debts is the goal of most bankruptcies.  The discharge is the court order, issued at the conclusion of a case, that wipes out the filer’s personal liability for most debts that existed when he began the case.

Not everything is discharged. The Bankruptcy Code lists a number of debts that will survive the proceeding.  Some are nondischargeable just because of the nature of the debt:  recent income taxes, family support, drunk driving judgments.

Some debts are non dischargeable only if the creditor files a timely adversary proceeding in the bankruptcy case and proves that his claim falls within those debts non dischargeable because of the debtor’s bad behavior:  debts incurred by fraud, misrepresentation, breach of fiduciary duty, theft or willful and malicious injury.

Student loans are dischargeable only if the debtor brings a successful adversary proceeding to prove that repaying the debt imposes an undue hardship on the debtor and his family.

The discharge can be denied as to all of the debts if the debtor commits one of those all encompassing bad-acts:  lies on the schedules, destroys or fails to keep appropriate records, or hinders the trustee’s work in the case.

Remember that the discharge eliminates the debtor’s personal liability for his debts.  Personal liability is the exposure that a person has to having their wages garnished or their bank account levied to pay a judgment.  Liens on assets survive the bankruptcy, but only as a charge on the asset.

A creditor with a lien on property of a debtor with a discharge can only take the property that is security for the debt.  The lienholder cannot look to the debtor to make up any difference between the value of the property and the original debt.  The discharge protects the debtor from that exposure.

Today’s explanation of bankruptcy was brought to you by the letter “D”.

In my friend Jay’s lexicon, D is for Debtor. What does he know?

Image courtesy of dumbledad.

More from the Soapbox

  • Bankruptcy Alphabet: E is for ExemptionsBankruptcy Alphabet: E is for Exemptions
  • Bankruptcy Alphabet:  F is for FirstBankruptcy Alphabet: F is for First
  • Bankruptcy Alphabet: G is for GuarantyBankruptcy Alphabet: G is for Guaranty
  • Bankruptcy Alphabet:  H is for HouseBankruptcy Alphabet: H is for House
  • Bankruptcy Alphabet: I Is For IRSBankruptcy Alphabet: I Is For IRS

Filed Under: ABC's of bankruptcy, How bankruptcy works

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Trackbacks

  1. Bankruptcy Alphabet: D Is For Debtor says:
    November 9, 2011 at 6:57 am

    […] D Is For Discharge […]

  2. Discharge of Debts in Bankruptcy | Bankruptcy Blog from Los Angeles Attorney says:
    November 10, 2011 at 10:38 pm

    […] D is for Discharge by Cathy Moran […]

  3. Bankruptcy A to Z ? D is for Discharge | Marin Bankruptcy Law says:
    November 14, 2011 at 11:29 pm

    […] New York attorney Jay Fleischman says D is for debtors. Silicon Valley attorney Cathy Moran thinks D is for discharge. […]

  4. Bankruptcy A to Z – F is for Fresh Start | Marin Bankruptcy Law says:
    November 15, 2011 at 4:49 pm

    […] can no longer harass them due to the automatic stay. Later most debt is liquidated or discharged. A discharge is the legal elimination of debt through a bankruptcy case: the debt is no longer legally enforceable against the debtor. This permanent order prohibits the […]

  5. D is for Discharge « attorneyaxinn says:
    November 18, 2011 at 9:09 am

    […] Cathy Moran […]

  6. Bankruptcy Alphabet: N Is For Nondischargeable says:
    November 23, 2011 at 7:42 am

    […] The letter N, in my Bankruptcy Alphabet, stands for Nondischargeable.? These are the debts that simply don’t go away, even when you get a bankruptcy discharge. […]

  7. Bankruptcy Alphabet: Q is for Questions says:
    December 1, 2011 at 8:19 am

    […] have the profound questions:? will bankruptcy improve my situation?? what will I give up to get a bankruptcy discharge?? what is life after bankruptcy […]

  8. DUI, DUI, OVI and Bankruptcy says:
    December 2, 2011 at 3:25 pm

    […] D is for Discharge […]

  9. D is for Documents in the Bankruptcy Alphabet | says:
    December 6, 2011 at 2:59 pm

    […] D is for Discharge by Cathy Moran, Northern CA […]

  10. 'D" Is For Debtor. | Downriver Bankruptcy says:
    December 7, 2011 at 10:00 pm

    […] discharge […]

  11. Bankruptcy Alphabet From A – Z — JC Law Group says:
    December 15, 2011 at 9:41 am

    […] Debtor Deconsolidate Discharge discharge Discharge Disclosures Divorce Documents Domestic Support DUI, DWI, […]

  12. Bankruptcy A-Z: D is for Debt Relief Agency | Metro Richmond Consumer, Bankruptcy and Small Business Lawyer | Goldstein Law Group says:
    December 22, 2011 at 5:22 am

    […] is for Debtor or Debtor. D is for Deconsolidate. D is for Discharge or Discharge or Discharge or Discharge. D is for Disclosures. D is for Documents. D is for Domestic […]

  13. Bankruptcy Alphabet: W is for Wait says:
    December 22, 2011 at 7:40 am

    […] Allow taxes to age to point of dischargeability […]

  14. The Bankruptcy Alphabet- “D” equals “Divorce” (Should you file before OR after divorce?) says:
    December 31, 2011 at 1:26 pm

    […] New York City Bankruptcy Attorney D = Documents- Kimberly Coleman, Philadelphia Bankruptcy Attorney D = Discharge- Cathy Moran, Northern CA Bankruptcy Attorney D = Disclosures- Robert Doig, Colorado Springs Bankruptcy Attorney D = DUI,DWI,OVI- Bill Balena, […]

  15. Tax Myths: It’s Safer Not To File The Return says:
    January 31, 2012 at 8:10 am

    […] most importantly to a bankruptcy lawyer is that you cannot ever discharge the tax debt in bankruptcy if the return is not […]

  16. T-Boz: Chapter 13 Is Worth Following The Rules says:
    February 15, 2012 at 7:50 am

    […] get the broadest discharge of debts available in […]

  17. D is for Discharge : Los Angeles Bankruptcy Law Monitor says:
    February 20, 2012 at 3:44 pm

    […] northern CA colleague Cathy Moran discusses the Discharge from the perspective of what is and is not dischargeable in bankruptcy. I would add that here in […]

  18. Bankruptcy A to Z – F is for Fresh Start | Marin Bankruptcy Lawyer says:
    February 23, 2012 at 12:48 am

    […] can no longer harass them due to the automatic stay. Later most debt is liquidated or discharged. A discharge is the legal elimination of debt through a bankruptcy case: the debt is no longer legally […]

  19. | | Stokley Martin Law Group, LLC says:
    May 1, 2012 at 11:55 am

    […] Discharge […]

  20. D is for Deciding to File Bankruptcy | Athena Legal says:
    May 17, 2012 at 12:51 pm

    […] Northern California Bankruptcy Lawyer, Cathy Moran: http://www.bankruptcysoapbox.com/bankruptcy-alphabet-d-for-discharge/ […]

  21. Chapter 13 When Can You File? says:
    October 29, 2012 at 9:18 am

    […] can file a chapter 13 anytime after filing a chapter 7 case. However, if you want, or need, a discharge in the chapter 13, like if you want to strip a mortgage, there is a four year look back from filing […]

  22. Bankruptcy Alphabet: L is for Life says:
    December 17, 2012 at 9:46 am

    […] L could also be for Lift, the lifting of a weight that many don’t realize they are carrying around until they know that most debts can be discharged. […]

Bankruptcy Basics

About The Soapbox

You’ve arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said “try”).

Here, I allow myself to tell stories and express strong opinions. We dig deeper into how to consider bankruptcy and navigate a bankruptcy case.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

How Bankruptcy Works

What Happens To Your Bank Account in Chapter 13

Those considering filing a Chapter 13 bankruptcy worry about "what happens to my bank account?" Will the trustee take all the money? How do I pay my living expenses after I file? The short answer is: nothing changes. The account remains yours and available for all the expenses of day to day living. Because, … Read more

More Posts from this Category

643 Bair Island Road
Suite 403
Redwood City, CA 94063
Phone: (650) 694-4700
Phone: (650) 368-4700

Categories

All content copyright © Moran Law Group. All rights reserved.