Some debts are not dischargeable (See Discharge of Debt) while others may only be discharged by filing certain types of bankruptcies. For instance, Chapter 13 Bankruptcy allows a broader discharge of debts including the willful or malicious injury to property, certain non-dischargeable tax payments and debts which resulted from divorce and separations.
Chapter 13 Bankruptcy generally allows for the discharge of these debts only after the Debtor has completed their bankruptcy debt repayment plan. If a debtor's debt is discharged Creditors must refrain from continuing any collection actions. Debts are discharged at various times depending on the chapter filed.
Chapter 7 Bankruptcy allows for the immediate Liquidation of the filer's assets and grants a discharge approximately 4-6 months after the petition is filed. Chapter 13 Bankruptcy discharge of debts occurs after the debtor makes all of their debt payments under their bankruptcy repayment schedule (3 to 5 years). Prior to the discharge of debt the debtor must complete a financial management course. The Notice of Discharge is sent to all the creditors, the United States Trustee, the trustee, the debtor and the debtor's attorney. Creditors are not allowed to continue collection efforts after the discharge of debt, and if they do, they will be punished.