A bankruptcy discharge, also known as a discharge in bankruptcy, refers to a permanent court order that releases a debtor from personal liability for certain types of debts. It is sometimes referred to simply as a discharge and comes at the end of a bankruptcy.

Can you include utility bills in a bankruptcy?

If you are facing a utility shut-off, including your electricity, gas, water, or telephone due to unpaid bills, filing Chapter 7 bankruptcy may help keep your service connected. Under federal law, if you file for bankruptcy, the utility company cannot change, refuse, or disconnect your service.

What happens to utility bills in bankruptcy?

Debt from past due utility bills are generally discharged (wiped out) in bankruptcy. If you are behind in your utility payments and file for bankruptcy, you can discharge the outstanding bills in Chapter 7 bankruptcy and repay outstanding bills through your repayment plan if you file for Chapter 13 bankruptcy.

What does bankruptcy mean in the United States?

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).

What happens when a bankruptcy case is closed?

It’s also confusing that, in many instances, the court will close the case soon after the entry of discharge. But the discharge order and case closure are different. The bankruptcy discharge releases the debtor from liability for certain debts, so the debtor is no longer legally required to pay the balance.

What are the different chapters of the Bankruptcy Code?

The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) chapter 15. The chapter of the Bankruptcy Code dealing with cases of cross-border insolvency.

What are the terms of a Chapter 7 bankruptcy?

The chapter of the Bankruptcy Code providing for “liquidation,” i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors. A person appointed in a chapter 7 case to represent the interests of the bankruptcy estate and the unsecured creditors.