The form provides that the debtor is granted discharge under 11 U.S.C. section 1228(a). The form also requires a signature by the bankruptcy judge.
Oregon Order Discharging Debtor After Completion of Chapter 12 Plan - updated 2005 Act form
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What happens when a creditor files an objection? A creditor's objection does not automatically prevent a discharge of debt. The debtor gets a chance to file an answer to the objection, and the court may hold a hearing to decide the issue. This is called an adversary proceeding, and it works much like any other lawsuit.
Key Takeaways. Types of debt that cannot be discharged in bankruptcy include alimony, child support, and certain unpaid taxes. Other types of debt that cannot be alleviated in bankruptcy include debts for willful and malicious injury to another person or property.
Debt discharge is the cancellation of a debt due to bankruptcy. When a debt is discharged, the debtor is no longer liable for the debt and the lender is no longer allowed to make attempts to collect the debt. Debt discharge can result in taxable income to the debtor unless certain IRS conditions are met.
People who file for personal bankruptcy get a discharge ? a court order that says they don't have to repay certain debts. Bankruptcy is generally considered your last option because of its long-term negative impact on your credit.
Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in ance with the provisions of the Bankruptcy Code.
What is a discharge in bankruptcy? A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.
Courts can issue a discharge ruling when the debtor meets the discharge requirements under Chapter 7 or Chapter 11 of federal bankruptcy law, or the ruling is based on a debt canceling. A canceling of debt happens when the lender agrees that the rest of the debt is forgiven.
The Process of a Debt Discharge The bankruptcy court will look at your plan and decide whether it is fair and in ance with the law. You will also need to work with a trustee who will distribute these payments to the creditors. The trustee will pay creditors ing to priority.