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What is the effect of a discharge?

Our Professional Answer

In every bankruptcy, the debtor can and does receive a discharge. The discharge completely erases all debt that the debtor owed. Now, the slight difference here, in a reorganization, is if the plan of reorganization says that you’re going to pay a particular creditor 10% of what’s owed, then the discharge will discharge 90% of that debt, but the plans proposal to pay 10% survives and you’ll still owe that 10%.