A discharge order in bankruptcy confirms that court relieves a debtor for any existing legal debt obligation to certain creditors at the time of filing bankruptcy. Once bankruptcy is discharged from the bankruptcy court, creditors covered in bankruptcy petition are forever prohibited for any attempt to collect from the debtor a debt that has been discharged. For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged debt from the debtor. A creditor who violates this order can be required to pay damages and attorney’s fees to the debtor. What does bankruptcy discharge order is normally 3 page documents and includes:
01. Bankruptcy court discharge Order The most important document is the actual discharge order of the bankruptcy judge. This actual order of the court contained in bankruptcy discharge papers relieves the debtor from all existing liabilities / debts listed in the bankruptcy petition filed. “It appearing that the debtor is entitled to a discharge, IT IS ORDERED: The debtor is granted a discharge under section 727 of title 11, United States Code, (the Bankruptcy Code).” It bears Signature of Judge and 2nd page clarifies Debts that are discharged and Debts not discharged.
02. Explanation of Bankruptcy Discharge This page of explains to creditors that collection of certain debts is now prohibited. It also clarifies that what type of debts are discharges and debts that are not discharged.
03. Certificate of Service This page is an additional page sometimes attached to discharge order and confirms that court has served this order to debtor, attorneys, all creditors listed in the bankruptcy case and related parties informing that debtor under bankruptcy is discharged. .
Why you need an official bankruptcy discharge papers:
1. To apply for new loans or credits
2. To apply for fresh mortgage
3. To update your credit report
I hope this will help general aspirant of records to identify the accurate copy of discharge order. I receive lot of inquiries and I hope this will help the end user to identify and read bankruptcy discharge order. For more details and obtain your bankruptcy papers Click Here Bankruptcy Records.
Aron Volin: Aron is sales personnel at Bankruptcy live dot com and tried to write a detailed note on how a discharge paper look like.
