Under bankruptcy, a debt discharge eliminates debt. That’s right – debt discharge releases a debtor from personal liability for his or her debts. That means that the debtor never has to pay those debts.
Unsecured debts are typically going to be dischargeable. An unsecured debt is debt that is not ties to any property like credit card debt or medical bills. Secured debt is debt that is ties to property like a car our home. There are certain debts like student loans, government loans, back taxes and other debts that usually cannot be discharged through bankruptcy.
Generally a Chapter 7 bankruptcy discharge is received 60 days after the 341 meeting, or first meeting of creditors. In Chapter 13, your discharge will be sent to you once you have completed the payments under the Chapter 13 plan.