What Occurs After Debts Are Discharged?
When a person successfully files for bankruptcy, his or her debts will eventually be discharged, which typically occurs at the very end of the process. In the final three months of 2018, more than 175,000 individuals and companies filed for bankruptcy, which shows just how common it is for people to take this step. If you’re thinking about filing for bankruptcy but are unsure of what the process involves, our New Jersey bankruptcy lawyer can help.
To What Does a Bankruptcy Discharge Refer?
When a bankruptcy court decides to order a discharge, there are a couple of things that occur. The main aspect of a bankruptcy discharge is that the debtor will no longer be required to pay some of his or her debts. However, not all debts are discharged. Some of the main debts that can’t be discharged when filing for a Chapter 7 bankruptcy include:
- Debts incurred from student loans
- Income tax debt in most cases
- Spousal support and child support
- Money that was gained via fraud
- Any debt that’s not listed on your initial bankruptcy paperwork
Along with the discharged debts, this order will stop creditors from attempting to collect any of the debts that have been discharged, which means that these individuals are unable to contact you through telephone calls or demand letters that attempt to obtain these debts.
When a Bankruptcy Discharge Typically Occurs
The timing for a bankruptcy discharge can depend on which chapter of bankruptcy is filed. When a Chapter 7 bankruptcy has been filed, it’s common for the discharge to occur once the time expires for filing a 
complaint relating to a specific debt that’s about to be discharged. Creditors will usually have a certain amount of time to object to the discharging of a debt. This expiration date is oftentimes several months after the individual filed for bankruptcy. In Chapter 11 and 13 bankruptcies, debts will usually be discharged once the affected individual or company provides any and all payments relating to the plan that was made after the bankruptcy was filed. A bankruptcy plan is typically created soon after a person files for bankruptcy in an attempt to eventually pay back some of the debts that are owed. Once the plan has been fulfilled, it’s possible for some or any of the remaining debts to be discharged. There are times when this discharge could be denied if a person did not complete an educational course for financial management in the time that was allotted for him or her to do so.
Reasons That a Bankruptcy Case Could Be Reopened
In many instances, a bankruptcy case will officially end when a discharge has been ordered. However, it’s possible for a bankruptcy case to be reopened in certain situations. Knowing what these situations are may be able to help you avoid having your case reopened in the future. For one, a bankruptcy case could be reopened if the debtor would like to add a debt that he or she initially forgot to list. When a debt isn’t listed in the initial bankruptcy filing, it won’t be discharged. Adding debt to the list allows the debtor to correct the problem while also notifying the creditor about the bankruptcy case in question. It’s also possible for a bankruptcy case to be reopened by a creditor or trustee if he or she finds a debt that wasn’t listed in the initial paperwork. There are times when the liquidation of certain debts would be more beneficial to a creditor or trustee, which could cause him or her to ask the court to reopen the case. If you’re in the midst of bankruptcy but you would like some legal assistance on the matter, our bankruptcy lawyers at Neuner & Ventura can provide you with the assistance you require. When you’re about to file for bankruptcy, call our New Jersey bankruptcy lawyers at (856) 596-2828 at our office in Marlton so that we can guide you through your case and help answer any questions that could arise.
