THE DISCHARGE
BANKRUPTCY LAWYER IN HACKENSACK NJ
(201)-646-3333
A discharge in United States bankruptcy law, when referring to a debtor's discharge, is a statutory injunction against the commencement or continuation of an action (or the employment of process, or an act) to collect, recover or offset a debt as a personal liability of the debtor. The discharge is one of the primary benefits afforded by relief under the Bankruptcy Code and is essential to the "fresh start" of debtors following bankruptcy that is a central principle under federal bankruptcy law. A discharge of debts is granted to debtors but can be denied or revoked by the court based on certain misconduct of debtors, including fraudulent actions or failure of a debtor to disclose all assets during a bankruptcy case.
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The benefit of the discharge injunction is narrower than (but similar to) the benefit afforded by the automatic stay in bankruptcy.
In the United States, there are generally seven kinds of debtor discharges in bankruptcy, found in the following statutes:
- 11 U.S.C. § 727(a) (relating to liquidation bankruptcies for individuals);
- 11 U.S.C. § 944(b) (relating to municipal bankruptcies);
- 11 U.S.C. § 1141(d)(1)(A) (relating to discharges resulting from confirmation of a Chapter 11 plan of reorganization);
- 11 U.S.C. § 1228(a) (relating to certain family farmer or fisherman cases);
- 11 U.S.C. § 1228(b) (relating to certain family farmer or fisherman cases);
- 11 U.S.C. § 1328(a) (relating to certain cases involving adjustment of debts of an individual with regular income);
- 11 U.S.C. § 1328(b) (relating to certain cases involving adjustment of debts of an individual with regular income).
The effect of the debtor's discharge is provided for at 11 U.S.C. § 524. In addition, certain limitations on the debtor's discharge are described at 11 U.S.C. § 523.
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