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Simple English definitions for legal terms
discharge hearing
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A quick definition of discharge hearing:
A discharge hearing is a court hearing in a bankruptcy case where the court tells the person who owes money (the debtor) whether they have been granted a discharge (freed from their debts) or not. If the debtor and a creditor want to keep a debt that can be discharged, they can present a reaffirmation of the debt for the court's approval at the reaffirmation hearing, which is usually held at the same time as the discharge hearing.
A more thorough explanation:
A discharge hearing is a legal proceeding in bankruptcy where the court informs the debtor whether they have been granted a discharge or not. If the debtor is granted a discharge, they are released from their debts and are no longer legally obligated to pay them. However, if the discharge is not granted, the court will provide reasons why.
John filed for bankruptcy and attended a discharge hearing. The court granted him a discharge, which meant he was no longer responsible for paying his debts. He could start fresh and rebuild his financial life.
A reaffirmation hearing is a legal proceeding in bankruptcy where the debtor and a creditor present a reaffirmation of a dischargeable debt for the court's approval. This means that the debtor agrees to continue paying the debt even though they could have it discharged in bankruptcy. The court must approve the reaffirmation to ensure that the debtor can afford to make the payments.
Sarah filed for bankruptcy and attended a reaffirmation hearing with her car lender. She wanted to keep her car and agreed to continue making payments on the loan. The court approved the reaffirmation, and Sarah was able to keep her car as long as she continued to make payments.