Also known as: bankruptcy discharges · discharge in bankruptcy · discharges in bankruptcy · discharge · bankruptcy relief
Written by attorneys · grounded in primary & secondary sources — see below
A court order in bankruptcy proceedings that releases the debtor from personal liability on covered debts. The order leaves unaffected any liens on the debtor's property and any liability of third parties such as guarantors.
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Belinda Baxter received a bankruptcy discharge that ended her personal liability on a mortgage note. Months later she executed a deed in lieu transferring the home to the lender in exchange for full satisfaction of the remaining debt. The lender accepted the deed voluntarily and recorded it, extinguishing the mortgage of record while the prior discharge already shielded Baxter from any deficiency claim.
Benjamin Brooks obtained a bankruptcy discharge that eliminated his personal obligation on a large business loan. The discharge had no bearing on the four-year term of the sitting President or the electoral process set forth in the Constitution. Brooks simply used the fresh start to reorganize his remaining affairs without personal liability on the discharged debt.
Brian Bailey's limited partnership received a bankruptcy discharge that relieved the entity of personal liability on its unsecured obligations. During winding up the partnership applied its remaining assets to pay creditors and then distributed the balance to partners. The discharge ensured that no partner faced personal collection efforts on the partnership's discharged debts after final distribution.
Barbara Bennett's general partnership obtained a bankruptcy discharge that eliminated liability on its trade debts. The partners applied partnership assets to settle obligations and then closed the business. Because of the discharge, creditors could not pursue the partners personally for any unpaid balance after the final accounting.
Bharat Bhatia received a bankruptcy discharge that removed his personal liability on a supply contract. When a temporary plant closure later made performance impracticable, the discharge already protected him from any claim for breach once the closure ended. The supplier therefore could not revive the discharged obligation even though performance had become feasible again.
Bella Barnes obtained a bankruptcy discharge that ended her personal liability on company debts incurred while serving as manager of an LLC. After leaving the manager role she remained subject to any obligations she had incurred in that capacity. The discharge did not affect those pre-existing liabilities to the LLC or its members.
No. The discharge releases only the debtor's personal liability. Secured creditors may still enforce valid liens against the collateral after the case closes.
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Yes. The discharge affects only the debtor who received it. Guarantors and other third parties remain fully liable on the underlying obligations.
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New debt is unaffected by the prior discharge. The debtor remains personally liable for obligations arising after the bankruptcy case.
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…the date of his execution was fixed by sentence duly entered in the District Court of Liberty County. This application for discharge by way of writ of habeas corpus is upon the ground that the verdict declares that his death shall be by hanging, while the sentence declares that it shall be by electrocution. At the time…