Discharge is often the last thing a bankruptcy client sees or thinks about their case, but it is not the end of the bankruptcy case. This is often a confusing aspect for clients. We’ll explain here and try to simplify the two and explain what the distinctions are.
11 United States Code § 101 is often helpful in defining terms in the bankruptcy context. This section is the “Definitions” section of the Bankruptcy Code. Regretfully, the terms “discharge” and “closure” are not set forth in the definitions section. So what do they mean in the day to day lives of those who choose to file for bankruptcy relief?
On the United States Courts’ website the answer to the question “What is a discharge in bankruptcy? is answered this way: