Discharge
The legal elimination of a debt through bankruptcy. A bankruptcy discharge releases you from personal liability for the debt — you no longer legally owe it and creditors cannot attempt to collect. Not all debts can be discharged (student loans and child support are generally non-dischargeable).
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- Bankruptcy
A legal process through which individuals or businesses declare they cannot repay their debts. Chapter 7 bankruptcy (liquidation) stays on your credit report for 10 years. Chapter 13 bankruptcy (repayment plan) stays for 7 years. Bankruptcy can cause FICO score drops of 100–200 points but allows for a fresh start.
- Chapter 7 Bankruptcy
A form of bankruptcy that discharges most unsecured debts (credit cards, medical bills, personal loans) within a few months. Also called liquidation bankruptcy. Chapter 7 remains on your credit report for 10 years from the filing date. You must pass a means test to qualify.
Frequently Asked Questions About Discharge
What does Discharge mean?
The legal elimination of a debt through bankruptcy. A bankruptcy discharge releases you from personal liability for the debt — you no longer legally owe it and creditors cannot attempt to collect. Not all debts can be discharged (student loans and child support are generally non-dischargeable).
Is Discharge important for my FICO® score?
Understanding Discharge helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.