Sometimes it’s good to stop and define what common words in bankruptcy proceedings really mean.
One such word is the “discharge” of debts. What does it mean that debts are discharged under Chapter 7 bankruptcy? It means they are wiped clean. You no longer have to pay those bills — the debt that was causing you such stress is erased.
For most people it is the single greatest moment in Chapter 7, occurring at the end of the process. You get a letter from your trustee explaining that you no longer need to pay many or all of the debts named in the letter.
It is important to remember that while many debts are dischargeable, others are non-dischargeable. Some dischargeable debts include the following:
Some examples of non-dischargeable debt: