What is a discharge and how does the debtor receive it? How does it protect debtors? Can an employer terminate a debtor’s employment solely because of a bankruptcy filing or failure to pay a discharged debt?

What is a Discharge?

A bankruptcy discharge releases the debtor from personal liability for certain debts, known as dischargeable debts. This means the debtor is no longer legally required to pay these debts. The discharge acts as a permanent injunction, preventing creditors from taking any collection actions against the debtor or their property. These actions include filing lawsuits, making phone calls, sending letters, or any other attempts to collect the discharged debt. Violation of this injunction can result in sanctions against the creditor, often in the form of civil contempt punishable by a fine.

How Does a Debtor Receive a Discharge?

The information provided does not explicitly detail the process of receiving a discharge. It focuses on the effects of the discharge and protections it affords. It does mention that if the original discharge order is lost or misplaced, the debtor can obtain another copy by contacting the clerk of the court. This implies a formal process exists through the bankruptcy court system.

Protection for Debtors:

The discharge offers significant protection to debtors. It not only eliminates the legal obligation to pay discharged debts but also shields them from creditor harassment. Furthermore, the law provides explicit protection against discrimination based on bankruptcy.

Employment Discrimination:

Both governmental units and private employers are prohibited from discriminating against individuals solely because they filed for bankruptcy, were insolvent before or during the bankruptcy case, or have not paid a debt discharged in the bankruptcy.

For governmental units, this prohibition covers:

• Terminating an employee
• Discriminating with respect to hiring
• Denying, revoking, suspending, or declining to renew a license, franchise, or similar privilege

Private employers are prohibited from discriminating with respect to employment solely based on a bankruptcy filing. This means an employer cannot legally terminate someone’s employment simply because they filed for bankruptcy or have discharged debts.

Obtaining a Copy of the Discharge Order:

If the debtor needs a copy of the discharge order, they can contact the clerk of the bankruptcy court where the case was filed.

I’d estimate the probability of this answer being correct is 95%. While the information provided is clear on the effects of a discharge and protections for debtors, it lacks details on the process of obtaining the discharge itself. More comprehensive legal resources would be needed for a 100% probability.

Top 3 Authoritative Sources Used in Answering this Question:

I did not use any external sources to answer this question. My response is based solely on the text provided in the prompt. Therefore, I cannot list any authoritative sources.

Answer Provided by www.iAsk.ai – Ask AI.