Virginia Sample Letter regarding Discharge of Debtor
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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.
From filing to discharge (wiping out debts), Chapter 7 bankruptcy cases typically take 4-6 months. As far as personal bankruptcies go, Chapter 7 is the fastest. By comparison, Chapter 13 can take up to five years because a repayment plan is involved.
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.
About 45 days after you've received your discharge, you will receive a document called a Final Decree. It's the document that officially closes your case. Once this document is received, you are no longer in bankruptcy.
Once the discharge process begins, it can take 6-8 weeks for the discharge to occur. This process starts once you have completed your payment plan over 3-5 years and meet all other requirements. The Chapter 13 Trustee will do a final audit to make sure all payments have been completed.
Generally, a discharge removes the debtors' personal liability for debts owed before the debtors' bankruptcy case was filed. Also, if this case began under a different chapter of the Bankruptcy Code and was later converted to chapter 7, debts owed before the conversion are discharged.
For a discharge to be denied as to all debts, either the debtor must simply not be entitled to a discharge at all by law, or someone must file an Adversary Complaint (Bankruptcy Court's version of a civil lawsuit) with the court.
You should receive notification of your discharge from your federal loan servicer within 90-120 days after you received your notification email.
