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When Are Bankruptcy Debts Discharged?

 Posted on May 10, 2023 in Discharge of Debts

TX bankruptcy lawyerWhen individuals choose to file for bankruptcy, their financial situation has usually reached a tipping point. They are so stressed out by the reality of their circumstances that they are – understandably – very concerned about how quickly they can get their eligible debts discharged. When they hear that the bankruptcy process, especially Chapter 13 bankruptcy, takes time, they may panic because they need solutions to their challenges immediately.

Yet, it is important to understand that while eligible bankruptcy debt is not discharged until the bankruptcy process is nearly complete – which can take months or years, depending upon the type of bankruptcy in question – the benefits of the automatic stay go into effect as soon as a filer’s bankruptcy petition has been submitted to the court.

Benefitting from “Immediate” Relief

As soon as the court receives a filer’s bankruptcy petition, it notifies all of the creditors listed in that petition of the filer’s case. Included in that notice is a reminder that the automatic stay – which remains in effect for the duration of a filer’s bankruptcy case – is now in effect. This means that nearly all collection actions and requests for repayment must cease immediately.

As a result, while filers will not have their eligible debts discharged for some time, they benefit from meaningful relief from many debt-related pressures and stresses as soon as they file for bankruptcy. When all of a filer’s bankruptcy requirements have been met, and the court is empowered to discharge their eligible debt balances, a filer’s sense of relief tends to be rooted in the fact that the process is now complete, as the automatic stay has been allowing them relief from collection action and repayment demands for quite a long time already.

Schedule a Case Evaluation with a Client-Focused San Antonio Bankruptcy Lawyer Today

If you are struggling with debt, you may need access to solutions “right now.” The bankruptcy process does take time, but working with a skilled San Antonio, TX bankruptcy lawyer will allow you to benefit from the protection afforded by the automatic stay as quickly as possible. The legal team at Law Offices of Chance M. McGhee understands that your debt-related challenges are urgent, as you would not be thinking about filing for bankruptcy if they were not. As a result, know that we will act swiftly to get you access to the protection you need and the peace of mind that you deserve.

To begin the process of building a more hopeful financial future, consider scheduling a free case evaluation today by submitting a contact form on our firm’s website or by calling 210-342-3400. You deserve to sleep peacefully at night, knowing that you have taken proactive steps to resolve your financial challenges. Get started by connecting with our team. We look forward to working on your behalf.


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