The question that is equally as important as what is a bankruptcy discharge is when does a debtor receive a discharge in a bankruptcy case?
The answer to this question differs based on the chapter of the Bankruptcy Code under which the bankruptcy case is filed. Discharges in Chapter 7 cases are typically granted by bankruptcy courts after the expiration of the time fixed for filing a complaint or objecting to discharge and the time fixed for filing a motion to dismiss the case for substantial abuse, which is 60 days after the first date set for the meeting of creditors. On average, this is four months after the date the bankruptcy petition is filed.
The court grants a discharge in individual chapter 13 cases as soon as is practicable after the debtor completes all plan payments as required by the chapter 13 plan. Plans of repayment may last from three to five years, which causes a discharge to be entered no sooner than this time after the date of the filing of the bankruptcy petition.
Debtors are not eligible to receive a discharge order in a Chapter 7 or chapter 13 case if he or she fails to complete either of the required credit counseling or financial management courses. There are exceptions to this rule, however, they are infrequently granted. One exception is if the U.S. trustee or bankruptcy administrator determines there are inadequate educational programs available, or if the debtor is disabled or incapacitated or on active military duty in a combat zone. In sum, debtors should not hesitate to take this course as soon as possible after filing their bankruptcy case.
Many bankruptcy debtors have a choice between filing a Chapter 7 bankruptcy case and Chapter 13 bankruptcy case. There are many differences between the two chapters. An experienced Morrison Law Group attorney can help you determine which is best for your financial situation. Call 801.456.9933 today to schedule a FREE consultation and discuss your complete set of options. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.