Showing posts with label creditors. Show all posts
Showing posts with label creditors. Show all posts

Monday, June 4, 2012

What is bankruptcy discharge order?


The bankruptcy discharge order is an order issued by the court judge and it permanently prohibits creditors from taking action to collect dischargeable / discharged debts against the debtor personally;  this does not prevent secured creditors from seizing collateral if payments are not kept up, or other creditors from pursuing property of the estate.

The granting of a discharge does not automatically result in the closing of a case.  All contested matters, adversary proceedings, and appeals must be resolved and the appointed trustee or debtor-in-possession must file a final report and account and request entry of a final decree before the Clerk's Office will close the case.