What is a Bankruptcy Discharge Letter?

Bankruptcy provides a way for a debtor to eliminate all eligible debts by a court action, giving him a fresh financial start. The process of bankruptcy can take around four months with a Chapter 7 bankruptcy. A Chapter 13 bankruptcy is a court-supervised repayment plan, which can take from three to five years to complete. The discharge is issued at the end of the bankruptcy process by a letter.

A Court Order

The bankruptcy discharge letter is a court order issued by the bankruptcy court. It shows the names of any debtors in the bankruptcy case, as well as the case number, and the court where the bankruptcy was filed. The letter states that the debtor appears to be entitled to a discharge, and orders that all eligible debts be discharged. A date of the discharge is also given, along with the name of the judge who granted it.

Who Receives the Letter?

The bankruptcy discharge letter is mailed to many people or organizations. A copy is sent to the debtors who filed, for their records. A copy is also sent to their lawyer, if they have one. All creditors who are affected by the filing also receive notification of the discharge by this letter. The bankruptcy trustee, and his lawyer if he has one, receive a copy, as well as the U.S. bankruptcy trustee.

Other Information

The back page of the bankruptcy discharge letter contains information about the discharge. The letter outlines the fact that a creditor is not allowed to attempt to collect a discharged debt, and it states that anyone who violates this order can face a court action, and the court may require them to pay damages and legal fees. A general summary is provided showing what types of debts are not eligible for discharge, for instance, student loans.

Other Information

The bankruptcy discharge letter contains a statement saying that most eligible debt existing on the day of the bankruptcy filing is included in the discharge. This may include debt that is not listed in the bankruptcy petition in certain instances. If you need a copy of a bankruptcy discharge letter, you can apply to the bankruptcy court in the district that originally discharged the debt. A discharge letter will be sent even if you have some debt in dispute through litigation in the bankruptcy court. The discharge applies to all eligible debt that is not in dispute.