The primary reason that a debtor files a Chapter 7 bankruptcy is to obtain a discharge that gives the debtor a "fresh start" financially. A discharge operates to prevent creditors from collecting most debts existing on the date the petition in bankruptcy was filed [technically on the date of the order for relief, which may be some time after the petition is filed in an involuntary bankruptcy]. BRA s524. A debt is discharged whether or not is an allowed claim.

It is important to understand that the discharge applies only to unsecured debts. Secured debts are enforceable to the extent they are not satisfied in the bankruptcy proceeding. BRA s524(e). Certain debts are excepted from the discharge and, in rare cases, a discharge can be denied entirely. BRA s523 and BRA s727. Contested discharges require separate litigation. BR 4007. If litigation to contest a discharge is not timely filed, the court must grant a discharge. This normally will be not later than sixty days after the date of the creditors' meeting. BR 4004. In some cases, the court will hold a discharge hearing. BR 4008. It must do so if the debtor has reaffirmed a debt. BRA s524(d).

The law protects debtors from certain types of discrimination based solely on the fact that they have resorted to bankruptcy. For the most part, this protection is given only against discrimination by public entities. BRA s525. Moreover, that a debtor has been in bankruptcy or obtained a discharge in bankruptcy are factors that a creditor may consider in making a decision to extend credit to a debtor. However, the statute does prohibit private employers from terminating or otherwise discriminating against an debtor solely on the ground that the debtor has resorted to bankruptcy. BRA s525(b).

The law protects debtors from certain types of discrimination based solely on the fact that they have resorted to bankruptcy. For the most part, this protection is given only against discrimination by public entities. BRA s525. Moreover, that a debtor has been in bankruptcy or obtained a discharge in bankruptcy are factors that a creditor may consider in making a decision to extend credit to a debtor. However, the statute does prohibit private employers from terminating or otherwise discriminating against an debtor solely on the ground that the debtor has resorted to bankruptcy. BRA s525(b).