Also known as: debtor's discharge · debtors discharge · debtor discharge · discharge · bankruptcy discharge
Written by attorneys · grounded in primary & secondary sources — see below
A release from personal liability for debts or obligations granted to a debtor upon satisfaction of the underlying duty or through operation of law such as bankruptcy proceedings. The discharge extinguishes the creditor's right to pursue the debtor personally while leaving any liens on property intact unless separately addressed.
Dorothy Daniels transferred her mortgaged home to the lender via deed in lieu after falling behind on payments. The lender accepted the deed and recorded it, releasing Dorothy from further personal liability on the note. Because the transfer was voluntary and the debt was credited in full, the mortgage was discharged and no deficiency judgment could be pursued against her.
After serving two full terms, the sitting president left office on January 20. The constitutional term limit automatically discharged the former president from any further executive duties or authority tied to that office.
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After dissolution, the limited partnership applied its remaining assets to pay all outstanding obligations to trade creditors and returning partners. Once those payments were completed, the partnership's debts were discharged and the entity could be formally closed.
Following dissolution of the general partnership, the partners marshaled assets and paid every creditor in full. The payments discharged the partnership's debts, allowing the business to be wound up without further personal exposure for the partners on those obligations.
A sudden port closure prevented Daniel Diaz from shipping goods under a fixed-price contract. The temporary impracticability suspended his duty to perform until the route reopened, but did not discharge the obligation because performance remained possible afterward without material extra burden.
After resigning as manager of the LLC, Deborah Dunn remained personally liable for a contract she had signed on the company's behalf while still in that role. Her departure did not discharge the pre-existing obligation to the LLC or its members.
The debtor is released from further personal liability on the mortgage debt once the lender accepts the voluntary transfer and credits the debt in full. The discharge prevents any deficiency judgment against the debtor personally.
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No. A temporary impracticability only suspends the duty during the event. The duty revives once the event ends unless performance afterward would be materially more burdensome than originally contemplated.
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No. A person's cessation as manager does not discharge any debt or obligation incurred while serving as manager. The former manager remains liable for those pre-existing duties to the LLC and its members.
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During winding up the partnership must apply assets to discharge all debts, obligations, and liabilities. Once paid in full, those obligations are extinguished and the partnership may close.
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