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What Is a Bankruptcy Discharge?

A Bankruptcy Discharge is used most commonly in the United States of America that could be found under the bankruptcy code specifically on chapter 7, chapter 11, chapter 12 or chapter 13. It is the legal process or procedure authorized by the court of freeing a debtor from paying different kinds of debts that were asked from him or her long time before. As soon as the Bankruptcy Discharge is issued and approved, the debtor’s obligation of paying the remaining debts are removed. This shows how it could greatly benefit the debtor. Not everyone could be issued a Bankruptcy Discharge and this would be discussed on the next paragraph.

There are some types of debts that couldn’t be issued such bankruptcy discharge. These debts include debts that have taxes; others are student loans and support given to a child or a spouse. There are also circumstances that this kind of discharge couldn’t be given due to crimes or violations committed by the debtor himself of herself; violations such as embezzlement, and fraud. It is a fact that this kind of discharge is very essential especially to those who are incapable due to lack of funds to pay certain debts but it is best to remember that just like any other agreements; it also has specific requirements which are very important to consider. Of course, those who have violated certain laws are automatically disqualified in this kind of privilege. This is just one of the privileges that the court have approved but it is considered to be one of the most important and helpful.

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