Chapter 7 Discharge - Definition

The effect of a Chapter 7 discharge upon debts of the estate

The legal definition of "Chapter 7 Discharge" - The Code allows for the elimination of debts as if they never existed. A "discharge," when granted by the Court, terminates all liability for repayment. Further, all obligations, rights and duties associated with the claim are also no longer enforceable by either party. Be aware, many types of debts are not dischargeable.

A Chapter 7 discharge is the goal of all people who file under this chapter. In the technical sense, courts must conduct a hearing to approve discharge, however in practice, most objections are filed well before the discharge hearing. All objections must be resolved as a condition precedent for discharge. For over 98% of individuals, the Chapter 7 discharge hearing is conducted administratively, that is, without necessity of a court room appearance by any party in interest.