The primary reason for a person to file bankruptcy is for the entry of a discharge. When a debt is “discharged” it means that the debt is no longer enforceable against the debtor. Essentially the debt is wiped out.
The scope of the Bankruptcy discharge varies depending on what type of case the debtor files: Chapter 7, 11, 12, or 13. It is also entered at different points in the case depending on the type of bankruptcy.
The bankruptcy discharge is a permanent court injunction that replaces the automatic stay. The discharge encompasses not only debts that were liquidated as the of the filing of the case, but any liability that arises from events before the filing so long as the creditor got notice of the bankruptcy filing.
The bankruptcy Court has the power to award damages against creditor’s that violate the discharge.