Discharge of Debts in Bankruptcy — How to Wipe the Slate Clean
When people think of bankruptcy, they often think of one word: discharge. And for good reason. Discharge is the finish line, the moment when your burdensome debts are permanently erased and creditors lose all power to collect.
But while the idea sounds simple, understanding which debts are discharged, which are not, and how to protect your discharge requires careful attention and experienced guidance. At Larson & Zirzow, our Las Vegas bankruptcy lawyers help clients make sure they receive the full relief the law provides, so when you finish your case you truly get the fresh start you deserve.
What Is a Bankruptcy Discharge?
A discharge is a court order that legally wipes out certain debts you owe. Once your discharge is entered, creditors can no longer try to collect on those debts. They can’t sue you, garnish your wages, send threatening letters, or negatively report the debt to credit agencies. The discharge is your shield for life against those debts.
For most people, this single order brings more peace of mind than anything else in the bankruptcy process. It means the constant fear of collection calls, lawsuits, or wage garnishments is over. Your income and future earnings belong to you again.
How the Discharge Works
In a Chapter 7 bankruptcy, the discharge is typically entered about three to four months after you file, after the trustee finishes reviewing your case and no objections are raised.
In a Chapter 13 bankruptcy, the discharge comes at the end of your repayment plan. That means you’ve made your monthly payments for three to five years according to your plan, curing arrears and paying back what your plan required. Once complete, the court grants a discharge of any remaining dischargeable debt. Certain secured debts can also be adjusted along the way, so you may not be paying as much on them each month as you were before filing Chapter 13.
At Larson & Zirzow, we guide you carefully through the entire process, so when you reach discharge, it’s smooth and secure. We make sure all paperwork is accurate, all deadlines are met, and there are no surprises that could put your relief at risk.
Which Debts Can Be Discharged?
Bankruptcy can discharge a wide range of debts that weigh down individuals and families. Some of the most common include:
- Credit card balances
- Medical bills
- Personal loans and payday loans
- Old utility bills and lease obligations
- Deficiency balances after vehicle repossession
- Certain tax debts meeting specific requirements
- Most civil judgments
These debts are wiped out permanently by your discharge, freeing you to move forward without the stress of impossible payments hanging over your head.
Debts That Typically Can’t Be Discharged
Some debts are treated differently under bankruptcy law. It’s important to know what will remain after your case, so you can plan for the future realistically. Generally, bankruptcy does not discharge:
- Child support and spousal support obligations (alimony)
- Recent federal income tax debts and certain tax penalties
- Student loans (except where an “undue hardship” exists, which is difficult to demonstrate)
- Debts for personal injury or death caused by driving under the influence
- Criminal fines or restitution
- Debts from fraud, embezzlement, or intentional wrongdoing (if proven)
This doesn’t mean bankruptcy can’t help you manage these obligations. In many cases, getting rid of other debts frees up income to pay the debts that can’t be discharged.
Protecting Your Discharge and Avoiding Pitfalls
Not every debt problem disappears just because you filed. In some cases, creditors may challenge whether a debt should be discharged. For example, if they believe you committed fraud, like lying on a credit application or running up significant charges just before filing, they may ask the court to deny the discharge for that specific debt.
Also, mistakes like hiding assets or improperly transferring property can risk your entire discharge. That’s why pre-bankruptcy planning and full honesty are so important.
When you work with Larson & Zirzow, we ask the right questions up front to spot potential problems before they threaten your fresh start. Our extensive experience in bankruptcy discharge litigation means we know how to defend your discharge if a creditor objects to it.
How Does a Discharge Affect Your Credit?
Many people worry about how a discharge affects their credit score. The truth is, the discharge itself is a major step toward rebuilding your credit. It wipes out debts that were being reported as having late or missed payments month after month, high account balances, and other reporting that otherwise would continue to report as delinquent or charged off for years.
Once your discharge is entered, your credit report should update to show those accounts as discharged in bankruptcy with a zero balance. Over time, this allows you to build a new payment and credit history without being dragged down by old obligations. Many people see their credit scores begin to recover within months of receiving their discharge.
Life After Discharge
Receiving a discharge doesn’t mean your financial story is over; it means you have a chance to write the next chapter on your own terms. With your debts cleared, you can focus on budgeting, saving, and making responsible credit choices that put you on solid ground for the future.
At Larson & Zirzow, we don’t leave clients in the dark once the discharge arrives. We answer your questions about rebuilding credit, can protect you if a creditor tries to collect on a discharged debt, and can help you understand what steps to take to keep your fresh start secure.
Why Trust Larson & Zirzow With Your Discharge?
When it comes to a discharge, there’s too much at stake to trust a “bankruptcy mill” or cheap online filing service. We are a boutique Las Vegas bankruptcy firm with a proud reputation for doing things correctly, thoroughly, carefully, and always with your best interests in mind.
We bring decades of experience and Board-Certified bankruptcy expertise to the table, handling not just routine discharges but also complex cases involving high-value assets, potential creditor objections, and challenging financial histories. We use every tool available to protect your right to a discharge and fight for you if anyone tries to stand in your way.
Ready for a Real Fresh Start? Contact the Las Vegas Bankruptcy Lawyers at Larson & Zirzow Today.
If you’re struggling with debts you can’t pay and wondering if bankruptcy could give you the freedom you need, we’re here to help. We’ll explain how discharge works, what you can expect, and how we’ll stand by you from your first consultation to the day you get your discharge and beyond.
Contact Larson & Zirzow today to schedule a confidential consultation. Find out how to wipe the slate clean, stop the stress, and take the first step toward true financial relief.