discharge in bankruptcy
- A legal order, usually issued by a bankruptcy judge, that forgives the remaining unpaid debts of a bankrupt individual after all assets and debts have been processed, but does not include certain debts such as those due to fraudulent actions, taxes, alimony and child support
- James breathed a sigh of relief after receiving his discharge in bankruptcy, releasing him from the burden of many debts.
- The court issued a discharge in bankruptcy to Sara, forgiving her unpaid debts except for child support and taxes.
- The discharge in bankruptcy meant that some of the unsecured creditors would not receive their due payments.