Definition
A court order that erases certain debts at the end of a bankruptcy case. After discharge, you’re no longer responsible for paying those debts.
What to consider
- Understand that this wipes out certain debts legally.
- Know it’s a fresh start, but rebuilding credit takes time.
- Plan for the long haul to recover financially afterwards.
Real world scenarios
- After completing her repayment plan, Jen receives a discharge that clears most of her remaining unsecured debts.
- Two months after the court ruling, Troy’s discharged debts no longer appear as active obligations on his credit report.
- Stephanie, now free from numerous credit card debts, focuses on building healthy saving habits to avoid future crises.
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