Bankruptcy Discharge
A court order releasing a debtor from personal liability for certain debts, meaning those debts are legally no longer collectible after the bankruptcy process concludes.
Not every debt is eligible for discharge, and which debts qualify depends on the type of bankruptcy filed and the specific circumstances, so a discharge doesn’t automatically eliminate every obligation a business or individual had.
A prior discharge remains on a credit report for a significant period and is a factor lenders weigh in underwriting, though its impact generally lessens over time as more positive credit history accumulates afterward.
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