What does it mean if a debt is discharged?
What does it mean if a debt is discharged?
A discharge releases a debtor from personal liability of certain debts known as dischargeable debts, and prevents the creditors owed those debts from taking any action against the debtor or the debtor’s property to collect the debts.
Can a creditor collect on a discharged debt?
The U.S. Supreme Court recently clarified the standard for holding a creditor in contempt after attempting to collect a debt from someone who’s received a bankruptcy discharge. If you’ve had debts discharged in bankruptcy, an injunction prevents creditors from trying to collect on those discharged debts.
Can I pay discharged debt?
You are free to make voluntary payments on all or part of your discharged debts. These payments do not invalidate the discharge order and do not create a new legal obligation.
What does discharged mean on my credit report?
What does it mean to have a County Court Judgment discharged? Having your County Court Judgment discharged means you no longer have a judgement against you – in other words, you have paid back your debt in full and are free of your obligations to the lenders in question.
How do you get a debt discharged off your credit report?
Thus, where a creditor has the ability to change the credit report, the best practice is to change the reporting upon discharge or, at the latest, as soon as the creditor receives such a request from the debtor by either deleting the debt or specifically reporting the debt as discharged in bankruptcy.
What happens if a creditor objects to discharge?
Getting a discharge means that your personal liability on qualifying debt is wiped out, and the creditor can no longer do anything to collect the debt from you. Creditors aren’t allowed to call you, sue you, garnish your wages, or continue any other collection efforts on the discharged debt.
How do I know if a debt has been discharged?
The discharge order sent by the Clerk’s Office will contain a general statement about the categories of debts that are discharged. The individual debts that are discharged will not be listed on the discharge order.
How do I know what debts were discharged?