What Discharge Means
A bankruptcy discharge is the court order that eliminates the debtor's personal liability for pre-petition debts. After discharge, creditors holding discharged debts are permanently enjoined from collecting under 11 U.S.C. Section 524 (the discharge injunction).
Key limits: Discharge does not eliminate liens on property (unless avoided), does not cover non-dischargeable debts under Section 523, and does not affect co-signers' liability (in Chapter 7).
Chapter-Specific Discharge Rules
Chapter 7 (Section 727)
Discharge typically issues 60-90 days after the 341 meeting, absent an objection. Section 727(a) lists grounds for denial (concealment of assets, fraud, failure to keep records, prior discharge within 8 years).
Chapter 11 (Section 1141)
Individual Chapter 11 discharge issues at plan confirmation or completion depending on the plan terms. Corporate Chapter 11 discharge issues at confirmation.
Subchapter V (Section 1192)
Subchapter V discharge in a consensual plan (1191(a)) issues at confirmation. In a cramdown plan (1191(b)), discharge issues after completion of plan payments, typically 3-5 years after confirmation.
Chapter 13 (Section 1328)
Chapter 13 discharge issues after completion of all plan payments, typically 3-5 years. Hardship discharge may be available under Section 1328(b) in limited circumstances.
Non-Dischargeable Debts (Section 523)
Section 523(a) excepts certain debts from discharge regardless of chapter. Common categories:
- Most tax debts (Section 523(a)(1))
- Debts obtained by fraud or false pretenses (Section 523(a)(2))
- Domestic support obligations (Section 523(a)(5))
- Willful and malicious injury (Section 523(a)(6))
- Student loans absent undue hardship (Section 523(a)(8))
- Drunk driving personal injury debts (Section 523(a)(9))
- Debts from prior bankruptcy cases (Section 523(a)(10))
The Discharge Injunction - Section 524
After discharge, creditors are permanently enjoined from any collection action on the discharged debt. Violations are punishable by contempt. See Section 524 discharge injunction for a detailed guide.
Common violations:
- Calling or writing the debtor about the discharged debt
- Suing on the discharged debt
- Reporting the debt to credit bureaus as owed (rather than discharged)
- Setoff against the debtor's accounts
Discharge Timing in MO
The MO bankruptcy court processes discharge orders in the ordinary course. Typical timelines:
- Chapter 7: discharge ~60-90 days after the 341 meeting
- Chapter 11 (individual): at confirmation or completion per plan terms
- Subchapter V (1191(a)): at confirmation
- Subchapter V (1191(b)): after plan completion
- Chapter 13: after plan completion
Region 13 U.S. Trustee oversight applies to all chapters in Missouri.