Business Bankruptcy Basics: Episode 6: What Sticks and What Doesn't: The Bankruptcy Discharge Explained

In this episode of Business Bankruptcy Basics, hosts Andrew Still and Miles Taylor are joined by Judge Cathleen Parker (Bankr. D. Wyo.) and dive into one of the most fundamental goals of the bankruptcy process: obtaining a discharge. The episode covers what a discharge is and the concept of the “fresh start,” key differences between Chapter 7 and Chapter 11 discharges, the major exceptions to discharge (including non-dischargeable debts and non-dischargeability actions), and what happens when a party violates a discharge order.

What We Cover in This Episode

• The Bankruptcy Discharge — What is a discharge, and how does it give debtors a “fresh start”? We break down the difference between the temporary relief of the automatic stay and the permanent relief of a discharge order.
• Chapter 7 vs. Chapter 11 Discharge — Not all discharges are created equal. We explore the key differences between liquidating under Chapter 7 and restructuring under Chapter 11, including why not every debtor ultimately receives a discharge.
• Non-Dischargeable Debts — Some debts simply cannot be wiped out. We cover the categories Congress has carved out under Section 523, including a critical distinction: corporations cannot receive a discharge in Chapter 7 — only individuals can.
• Non-Dischargeability Actions — Judge Parker walks us through adversary proceedings and what it takes to challenge a debtor’s discharge in court — an extreme remedy with a high evidentiary bar and strict timing requirements.
• Violations of the Discharge Order — Ignoring a discharge order means defying a direct court order. We discuss what that looks like in practice and why anyone involved in a bankruptcy case needs to understand the consequences.

The content of the “Business Bankruptcy Basics” podcast, including any statements made by its hosts or guests, is provided for educational purposes only. This podcast is not intended to be, nor should it be relied upon as, legal advice. Listening to this podcast does not create an attorney-client relationship.

The views and opinions expressed in this podcast are solely those of the hosts and guests and do not reflect the positions or opinions of their employers or any organizations with which they may be affiliated.

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