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•ase:09- 21916 -EEB Doc #:193 Filed:06 /09/10 _. :flOi 5pcitage2fof 3 <br />FORM B18_7 continued (12/07) <br />EXPLANATION OF BANKRUPTCY DISCHARGE <br />IN A CHAPTER 7 CASE <br />This court order grants a discharge to the person named as the debtor. It is not a dismissal of the case and <br />it does not determine how much money, if any, the trustee will pay to creditors. <br />Collection of Discharged Debts Prohibited <br />The discharge prohibits any attempt to collect from the debtor a debt that has been discharged. For <br />example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to <br />attach wages or other property, or to take any other action to collect a discharged debt from the debtor. [In a case <br />involving community property: There are also special rules that protect certain community property owned by the <br />debtor's spouse, even if that spouse did not file a bankruptcy case.] A creditor who violates this order can be required <br />to pay damages and attorney's fees to the debtor. <br />However, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, <br />against the debtor's property after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case. <br />Also, a debtor may voluntarily pay any debt that has been discharged. <br />Debts That are Discharged <br />The chapter 7 discharge order eliminates a debtor's legal obligation to pay a debt that is discharged. <br />Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. (If this <br />case was begun under a different chapter of the Bankruptcy Code and converted to chapter 7, the discharge applies to <br />debts owed when the bankruptcy case was converted.) <br />Debts that are Not Discharged. <br />Some of the common types of debts which are discharged in a chapter 7 bankruptcy case are: <br />a. Debts for most taxes; <br />b. Debts incurred to pay nondischargeable taxes; <br />c. Debts that are domestic support obligations; <br />d. Debts for most student loans; <br />e. Debts for most fines, penalties, forfeitures, or criminal restitution obligations; <br />f. Debts for personal injuries or death caused by the debtor's operation of a motor vehicle, vessel, or aircraft <br />while intoxicated; <br />g. Some debts which were not properly listed by the debtor; <br />h. Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not <br />discharged; <br />i. Debts for which the debtor has given up the discharge protections by signing a reaffirmation agreement in <br />compliance with the Bankruptcy Code requirements for reaffirmation of debts; and <br />j. Debts owed to certain pension, profit sharing, stock bonus, other retirement plans, or to the Thrift Savings <br />Plan for federal employees for certain types of loans from these plans. <br />This information is only a general summary of the bankruptcy discharge. There are exceptions to <br />these general rules. Because the law is complicated, you may want to consult an attorney to determine the <br />exact effect of the discharge in this case. <br />