What Debt's are discharged in Bankruptcy?


The first thing to understand is the word discharged. This is the legal order from the Court that releases the debtor from their responsibility to pay back the debts they promised to pay before bankruptcy. For example, if you get a credit card from any bank or credit card company, you are required to sign a promissory note. This promissory note is a contract between you and the lender that you will pay back the money you borrow or the lender can sue you and potentially take personal property if you default or fail to pay.