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discharge in bankruptcy

   Also found in: Legal, Wikipedia 0.01 sec.
Discharge in Bankruptcy
The act of a bankruptcy court forgiving the debt of the person or company that has filed for bankruptcy. A discharge in bankruptcy means that the creditors have received as much as they are going to receive and that they no longer have the right to attempt to collect on debts.

discharge in bankruptcy
The release of a debtor from the payment of any and all debts except those specifically approved by a bankruptcy court.


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Such a right is not a claim in bankruptcy and, as such, is not subject to discharge in bankruptcy.
This is to ensure that you are aware of the potential consequences of seeking a discharge in bankruptcy such as the effect on your credit history, the ability to file a petition under a different chapter, the effect of receiving a discharge, and the effect of reaffirming a debt.
Accordingly, a defendant in a civil case can have a discharge in bankruptcy as a bona fide defense to a creditor's suit.
 
 
 
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