bankruptcy discharge

A bankruptcy discharge is an order issued by the bankruptcy court that permanently releases the debtor from personal liability for certain specified debts. Once granted, the debtor is no longer legally obligated to pay those debts. In most cases, the discharge is entered automatically at the end of the case unless a creditor, trustee, or the U.S. Trustee objects.

A discharge also creates a discharge injunction, which prohibits creditors from taking any collection action on discharged debts, including lawsuits, garnishments, or direct contact with the debtor. Creditors who violate the discharge injunction may be sanctioned by the court.

Not all debts are dischargeable. Common non-dischargeable debts include certain taxes, domestic support obligations, most student loans, debts for fraud or willful injury, and criminal fines. In addition, valid liens that were not avoided during the bankruptcy case generally survive the discharge, meaning secured creditors may still enforce their liens against the collateral.

A discharge may be revoked by the court in cases of fraud or misconduct, and a debtor may voluntarily repay any discharged debt even though repayment cannot be legally compelled.

[Last reviewed in August of 2025 by the Wex Definitions Team] 

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