What is a Chapter 7 discharge?
A) The termination of the legal duty of an individual debtor to pay both secured and unsecured debts before he or she is granted a court trial.
B) The termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a Chapter 7 proceeding.
C) The cancellation of all debts of a debtor that remain unpaid upon the completion of a Chapter 13 proceeding.
D) An instruction to the debtor to propose a plan to pay all or a portion of the debts he or she owes in installments.

Question

Quizplus · Accepted Answer

A Chapter 7 discharge is the termination of the legal duty of an individual debtor to pay unsecured debts that remain unpaid upon the completion of a Chapter 7 proceeding. This means that the debtor is no longer obligated to pay back the debts that were discharged in the bankruptcy, and the creditors cannot take any further legal action to collect on those debts. However, some types of debts are not dischargeable in Chapter 7, such as student loans and certain tax debts.

What Is a Chapter 7 Discharge