A bankruptcy discharge is the statutory forgiveness of liability for the balance of a debtor’s obligations that are not reaffirmed or otherwise satisfied in a bankruptcy case. For most debtors, the bankruptcy discharge is the primary reason and motivation for filing for bankruptcy. The bankruptcy discharge promotes the fresh-start policy of the United States bankruptcy laws. It frees honest debtors from financial burdens. The receipt of a bankruptcy discharge is a privilege that is subject to limitations that balance the fresh start against other policies served by the Bankruptcy Code.

     It is the age-old question isn’t it? What effect does filing Chapter 7 Bankruptcy have on my credit? It’s not what you think and here is why. Suppose you say to me, I have 50k in credit card debt and I have fallen behind on my payments. The credit card companies have not sued me yet but I am in default on all my payments and I am starting to hear from collection agencies. We all know collection agencies are the last stop before you get sued and your wages garnished and accounts levied by creditors.