The Bankruptcy Discharge Order
Like most attorneys, I pride myself on my communication skills. Like most people, I’m blind to my shortcomings. The other day I was in a consultation explaining the bankruptcy process and got to the part where I start talking about the discharge order. “Discharge order?” my potential client asked. “Is that a good thing?” It was one of the moments that I realized that I was using Legalese, that particular language used only by lawyers. It made me think of two things that I wanted to share.
First, a discharge order is a good thing. When the court signs that order, you’re no longer legally responsible for any of your discharged debts. They are permanently eliminated. In a Chapter 7 bankruptcy, the order will come about 90 days after we file your petition. In a Chapter 13, it will come after you’ve completed your three to five year repayment plan.
That means that creditors can no longer pursue you for those debts. However, if you’ve included a secured debt in your bankruptcy, like a car loan or mortgage, the discharge order does not prevent them from repossessing your car or foreclosing on your home if you fail to make payments on the loan.
Keep in mind, not all debts are discharged in bankruptcy. Debts such as alimony, child support, court restitution, certain back taxes, for example can’t be eliminated by bankruptcy. There are others, and you should talk to an attorney to learn more.
Also remember that before your discharge order can enter, you have to complete the financial management class. If you forget to take the class and file the certificate of completion and the court will close your case without a discharge and shortly you’ll be where you were before you filed.
The second thing that my potential client’s question made me think was that if you are considering bankruptcy, you should remember that this is your bankruptcy. If something is happening that you don’t understand, ask the question. Make sure your attorney explains the process to you in a way that you understand. If he refuses, consider whether or not he’s the best bankruptcy lawyer for you.
If you’re confused by what you’re finding on the Internet about bankruptcy, we hope you’ll come in for a free, no obligation consultation with an experienced bankruptcy attorney. You can schedule your appointment online or call 303.331.3403 to meet at a time that’s convenient for you.