A discharge is a bankruptcy court order which releases the debtor from payment of all of his or her dischargeable debts and orders the creditors not to attempt to collect any money owed. Not all debts are dischargeable under a Chapter 7 and not all debtors will be eligible to receive a discharge.

Persons Not Entitled to Discharge

• Were granted a discharge in a Chapter 7 bankruptcy within the last 7 years
• Were granted a discharge in a Chapter 13 bankruptcy within the last 6 years unless 70 percent or more of the unsecured claims were paid in the Chapter 13 bankruptcy
• Filed a waiver of discharge which was approved by the court in the Chapter 7 bankruptcy
• Concealed, destroyed, or falsified records of financial condition or business transactions
• Made false statements or claims in the Chapter 7 bankruptcy or withheld recorded information from the trustee
• Failed to explain any loss or deficiency of assets in a satisfactory manner
• Refused to answer questions or obey orders of the bankruptcy court in either his or her own bankruptcy case or in the bankruptcy case of a relative, business associate, or corporation he or she is associated with

Most Common Debts That Are Not Dischargeable Under Chapter 7

• Tax debts and debts incurred to pay federal tax debts
• Debts obtained by false pretenses, fraud, or false financial statements if the creditor files a complaint in the bankruptcy case
• Debts for luxury goods or services and debts for cash advances made within 60 days before filing bankruptcy
• Debts not listed on debtor's Chapter 7 schedules unless creditor files claim with bankruptcy court
• Debts for fraud, embezzlement or larceny if the creditor files a complaint in the bankruptcy case
• Debts for alimony, maintenance, or support if creditor files complaint in bankruptcy case, including debts related to divorce settlement agreement
• Debts for willful and malicious injury by debtor to another entity or its property

Release From Payment of Debts - Discharge - Chapters 13 and 11

     As soon as practicable after completion by the debtor of all payments under the plan, the court shall grant the debtor a discharge of all debts provided for by the plan. A chapter 13 or chapter 11 discharge is more comprehensive than a chapter 7 discharge, and most debts, other than for alimony, child support or maintenance, are discharged upon the completion of the plan.