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Discharge vs. dismissal.(communique)(Brief Article)

Business Credit

| July 01, 2004 | Brasco, Henry | COPYRIGHT 2004 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Adischarge prohibits any attempt to collect from the debtor that has been discharged. For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any action to collect a discharged debt from the debtor.

Debts That Are Discharged

The Chapter 7 discharge order eliminates a debtors' legal obligation to pay a debt that is discharged. Most, but not all types, of debts are discharged if the debts existed on the date the bankruptcy was filed.

Debts That Are Not Discharged

a) Debts for most taxes

b) Alimony, maintenance or child support

c) Most student loans

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