A Bankruptcy Discharge Can Start A New Life

A bankruptcy discharge of debts is the main goal in pursuing a bankruptcy proceeding. When debt is say to be discharged, that means a creditor can no longer force you to pay your debts. Most debts are dischargeable in bankruptcy court, however some cannot be relieved with a bankruptcy discharge. Some examples of non-dischargeable debts are taxes, child support, and government-backed student loans.

To gain a bankruptcy discharge from debts, everyone who files bankruptcy must make at least one appearance in court. Bankruptcy court isn't like court pictured on television shows. Some refer to it as the "meeting of creditors," usually scheduled 30 days after filing bankruptcy. Also, ii is called by some the "341 meeting" after the section of the bankruptcy code that requires such a meeting. A trustee is assigned to your case and oversees the liquidation of assets to help resolve the debt.

To receive a bankruptcy discharge the debtor must appear at the meeting and swear under oath about your assets and liabilities. The meeting of the creditors is usually a low-key affair and doesn't take much time. Creditors do not have to be present to file a claim so often no one shows up but the debtor, his attorney, and the trustee. The debtor does not have to explain why they chose to file bankruptcy.

Almost everyone that asks for bankruptcy discharge of their debts is usually granted one. The bankruptcy court system presumes that an individual is entitled to a discharge. If a creditor wishes to challenge a discharge, he has the burden of proof showing that the debtor is not eligible for a discharge. Thus, most will leave the issue alone due to the extra costs of hiring an attorney.