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Discharge
What Is a Discharge?
A discharge is a legal release from the obligation to repay certain debts.
It most commonly occurs in bankruptcy, where eligible debts are officially forgiven by a court order.
Once a debt is discharged, the creditor can no longer attempt to collect it.
However, not all debts qualify for discharge.
How Discharge Works
In personal bankruptcy:
- Chapter 7 may discharge many unsecured debts, such as credit card balances and medical bills.
- Chapter 13 may discharge remaining eligible balances after completing a repayment plan.
Discharges are granted by federal bankruptcy courts under U.S. bankruptcy law.
Certain debts are typically not dischargeable, including:
- Most student loans
- Recent taxes
- Child support and alimony
Why Discharge Matters
A discharge:
- Stops collection efforts permanently
- Eliminates personal liability for qualifying debts
- Remains on your credit report for years
While it offers relief, it also significantly affects your credit profile.
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