The Chapter 7 discharge eliminates the debtor's personal liability for most pre-petition unsecured debts. This page covers what discharge does and doesn't do, common post-discharge issues, and what to do if a discharged creditor continues collection.
What the discharge does
The discharge under § 727 (after the case completes successfully):
Eliminates the debtor's personal liability on most pre-petition unsecured debts
Permanently enjoins creditors from collection activity on discharged debts (§ 524 discharge injunction)
Prevents the debtor from being held liable for the debt as a personal obligation
What the discharge does NOT do
Discharge non-dischargeable debts (§ 523(a) categories: certain taxes, student loans without § 523(a)(8) AP, alimony/child support, certain fines, debts from fraud, etc.)
Eliminate liens on property — secured creditors can still foreclose or repossess if the debtor doesn't pay or doesn't reaffirm
Prevent collection from co-signers or co-debtors who didn't file
Eliminate post-petition debts
Improve credit score automatically — credit reporting still shows the bankruptcy for 10 years
The § 524 discharge injunction
After discharge, § 524(a) makes the discharge an injunction against any further attempt to collect the discharged debt as a personal obligation of the debtor. Violations can be redressed through contempt motions in the bankruptcy court.
Common § 524 violations:
Continued dunning calls or letters from a discharged creditor
Reporting the debt as currently owed on credit reports (post-discharge)
Lawsuits filed against the debtor on discharged debt
Wage garnishment for discharged debts
Reaffirmation
If the debtor wants to keep secured property by continuing to pay the debt, a "reaffirmation agreement" is the mechanism:
Agreement signed by debtor and creditor
Filed with the court before discharge
Pro se debtors must have a hearing where the court approves the reaffirmation as not creating undue hardship
If properly reaffirmed, the debt survives the discharge and the creditor retains both lien and personal liability
Redemption
An alternative to reaffirmation for personal property: § 722 redemption. The debtor pays the creditor the present value of the collateral (not the full debt) in a lump sum, and the lien is released. Useful when the property is worth substantially less than the debt.
Post-discharge credit recovery
Common post-discharge credit-rebuilding steps:
Pull credit reports from all three bureaus (Equifax, Experian, TransUnion) and verify discharged debts are reported as "discharged in bankruptcy" not as currently owed
Dispute any creditor still reporting discharged debts as collectable
Open a secured credit card or credit-builder loan
Make all post-discharge payments on time
The bankruptcy itself stays on credit reports for 10 years (Ch.7) or 7 years (Ch.13), but credit scores typically begin recovering within 12-24 months of discharge if post-discharge credit is managed responsibly
Reopening the case
If discharged debts emerge after case closure (forgotten creditors, errors in scheduling), the case can be reopened under § 350(b) to add the omitted debts. There's a small reopening fee. For no-asset cases, the omitted debts are still discharged because the discharge order discharges all dischargeable debts whether listed or not.