discharge in bankruptcy

Definition of "discharge in bankruptcy"
  1. 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
How to use "discharge in bankruptcy" in a sentence
  1. James breathed a sigh of relief after receiving his discharge in bankruptcy, releasing him from the burden of many debts.
  2. The court issued a discharge in bankruptcy to Sara, forgiving her unpaid debts except for child support and taxes.
  3. The discharge in bankruptcy meant that some of the unsecured creditors would not receive their due payments.

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