The Effect Of A Discharge

Individuals who are overburdened by debt can file for bankruptcy in order to clear a portion or all of their debts. This form of relief is referred to as a bankruptcy discharge. Here at the Rochester and St. Charles, Minnesota, based law firm of Ryan & Grinde, our lawyers have the experience and knowledge to help our clients navigate the bankruptcy process and increase their chances of receiving a bankruptcy discharge.

What Is A Discharge In Bankruptcy?

A bankruptcy discharge eliminates the personal liability of the debtor for specific types of debts. Essentially, the debtor will no longer be legally required to pay the debts that were discharged. Not only is a bankruptcy discharge permanent, but it prevents creditors from communicating to the debtor about or taking legal action for all discharged debts. However, while the debtor does not have personal liability for these debts, any valid liens may remain. A creditor may be able to enforce a valid lien to claim property.

Are All Debts Discharged?

The bankruptcy discharge does not eliminate personal liability for all debts. Different chapters of the Bankruptcy Code discharge different debts. Also, Section 523(a) of the Bankruptcy Code exempts specific categories of debt from bankruptcy discharge for individual debtors. Even after receiving a discharge, the debtor will still need to repay these debts. The reasons these debts are exempted from discharge are usually related to the nature of the debt or how the debt was incurred. For example, debts related to drunk driving will likely be exempted from discharge under most chapters.

There are 19 categories of debts that are exempted from bankruptcy discharge for Chapters 7, 11, and 12. The exceptions for bankruptcy discharge are more limited for Chapter 13.

Contact Us

For more information about bankruptcy discharge and exemptions in Minnesota, schedule a reduced flat fee $150 initial consultation with the attorneys of Ryan & Grinde. Call us at 507-282-8118 or contact us online.

As to bankruptcy matters, we are designated a debt relief agency under the BAPCPA. We help people file for bankruptcy relief under the Bankruptcy Code.