11 U.S.C. §524 — Effect of discharge

bankruptcy-11usc-524

11 U.S.C. §524 governs the legal effect of a bankruptcy discharge: the discharge injunction, reaffirmation procedures, and codebtor liability.

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source:
  type: regulation
  id: bankruptcy-11usc-524
  authority: 11 U.S.C. §524 — Effect of discharge
  description: |
    11 U.S.C. §524 governs the legal effect of a bankruptcy discharge: the
    discharge injunction, reaffirmation procedures, and codebtor liability.
obligations:
  - id: bankruptcy-11usc-524-a2-discharge-injunction
    canonical_id: bankruptcy-11usc-524-a2-discharge-injunction
    section: 11 U.S.C. §524(a)(2) — Discharge injunction against personal-liability collection
    description: |
      A bankruptcy discharge operates as an injunction against the
      commencement or continuation of any action, employment of process, or
      act to collect, recover, or offset a discharged debt as a personal
      liability of the debtor. [LENDER] must, on discharge, cease all
      personal-liability collection on any debt discharged under §§727,
      944, 1141, 1192, 1228, or 1328 — including collection calls, dunning
      letters, billing statements seeking personal payment, and credit
      reporting of the debt as a personal liability. In-rem collection
      against the property securing a mortgage (e.g., foreclosure on the
      lien) is generally permitted post-discharge under §524(j) / §524(e)
      where the lien has not been avoided.
    type: dont
    audit_question: On entry of a discharge order under §§727, 944, 1141, 1192, 1228, or 1328, can [LENDER] evidence cessation of all personal-liability collection activity (calls, dunning letters, statements demanding personal payment, credit-reporting as a personal-liability debt) for the discharged debt within an operationally reasonable time?
    program_review: Do the P&Ps facilitate cessation of all personal-liability collection (calls, dunning letters, statements demanding personal payment, credit-reporting as a personal-liability debt) within an operationally reasonable time of a §§727/944/1141/1192/1228/1328 discharge order, while preserving permitted in-rem lien enforcement?
    file_review: Start with the notes from the discharge-order date; confirm personal-liability collection stopped and that any continued activity was in-rem only. The compliance person judges whether statement language and furnishing stayed on the in-rem side of the line.
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: bankruptcy_specialist
    secondary_owner_role: default_servicing_analyst
    cadence: per-bankruptcy-event
    consequence: Contempt sanctions under §105 (and the §524(a)(2) injunction itself) for willful violation; class-action exposure for systematic post-discharge collection.
    tags:
      - round-b
      - regulator-direct
      - bankruptcy
      - discharge-injunction
      - collection-hold
      - promoted
    primary_source:
      tier: 1
      authority: 11 U.S.C. §524(a)(2)
      source_class: bankruptcy-statute
      source_url: https://www.law.cornell.edu/uscode/text/11/524
      snapshot_id: 15344ea1b340f1b6
      fetched_at: '2026-05-22T18:52:48Z'
      content_hash: sha256:888d69b388131efc725aa6f226329c1bf028cf34c1deed34bc7fc98ab9bbc72e
      paragraph_quote: operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived; and
      drafter_attestation: |
        Copied verbatim from snapshot 15344ea1b340f1b6 (content.txt) at
        2026-05-22T19:20Z. Substring is the §524(a)(2) operative
        injunction sentence.
    promoted_at: '2026-05-22T19:07:35+00:00'
    promoted_from: bankruptcy-11usc-524-roundb-v1.yaml
  - id: bankruptcy-11usc-524-c-reaffirmation-enforceability
    canonical_id: bankruptcy-11usc-524-c-reaffirmation-enforceability
    section: 11 U.S.C. §524(c) — Enforceability of reaffirmation agreement
    description: |
      A reaffirmation agreement between [LENDER] and the debtor — covering a
      debt dischargeable in the case — is enforceable only if (1) made
      before the discharge order; (2) the debtor received the §524(k)
      disclosures at or before signing; (3) the agreement was filed with
      the court (with attorney declaration where the debtor was
      represented); (4) the debtor has not rescinded within the §524(c)(4)
      window (discharge or 60 days after filing, whichever is later); (5)
      the §524(d) hearing requirements have been complied with; and (6) for
      unrepresented debtors with non-real-property consumer debts, the
      court has approved the agreement under §524(c)(6)(A). [LENDER] is the
      proponent of every requirement.
    type: do
    audit_question: For every reaffirmation [LENDER] takes, can [LENDER] evidence (i) pre-discharge execution, (ii) §524(k) disclosures, (iii) filing with the court (and attorney declaration if represented), (iv) compliance with the 60-day/discharge rescission window, (v) §524(d) hearing compliance, and (vi) court approval where required under §524(c)(6)?
    program_review: Does the program account for every §524(c) enforceability condition on a reaffirmation [LENDER] takes — pre-discharge execution, §524(k) disclosures, court filing (with attorney declaration if represented), the rescission window, §524(d) hearing compliance, and §524(c)(6) court approval where required?
    file_review: On each reaffirmation file, spot-check the presence of each condition's artifact (signed disclosures, filing stamp, declaration, hearing record, approval order). Objective element/presence check against the §524(c) list.
    judgment: false
    feeds:
      - bankruptcy-11usc-524-c4-rescission-window
    workflow_phase: servicing
    owner_role: bankruptcy_specialist
    secondary_owner_role: compliance_officer
    cadence: per-reaffirmation
    consequence: Unenforceability of reaffirmation; willful-violation exposure if [LENDER] continues to collect on a defective reaffirmation as a personal liability after discharge.
    tags:
      - round-b
      - regulator-direct
      - bankruptcy
      - reaffirmation
      - promoted
    primary_source:
      tier: 1
      authority: 11 U.S.C. §524(c)
      source_class: bankruptcy-statute
      source_url: https://www.law.cornell.edu/uscode/text/11/524
      snapshot_id: 15344ea1b340f1b6
      fetched_at: '2026-05-22T18:52:48Z'
      content_hash: sha256:888d69b388131efc725aa6f226329c1bf028cf34c1deed34bc7fc98ab9bbc72e
      paragraph_quote: (c) An agreement between a holder of a claim and the debtor, the consideration for which, in whole or in part, is based on a debt that is dischargeable in a case under this title is enforceable only to any extent enforceable under applicable nonbankruptcy law, whether or not discharge of such debt is waived, only if—
      drafter_attestation: |
        Copied verbatim from snapshot 15344ea1b340f1b6 (content.txt) at
        2026-05-22T19:20Z. Substring is the §524(c) reaffirmation
        enforceability headline; the (1)-(6) requirements are paraphrased
        in description.
    promoted_at: '2026-05-22T19:07:35+00:00'
    promoted_from: bankruptcy-11usc-524-roundb-v1.yaml
  - id: bankruptcy-11usc-524-c4-rescission-window
    canonical_id: bankruptcy-11usc-524-c4-rescission-window
    section: 11 U.S.C. §524(c)(4) — Debtor rescission window for reaffirmation
    description: |
      The debtor may rescind a reaffirmation agreement at any time prior to
      discharge or within sixty days after such agreement is filed with the
      court, whichever occurs later, by giving notice of rescission to
      [LENDER] as holder of the claim. [LENDER] must honor any timely
      rescission notice; continued collection on a rescinded reaffirmation
      is a discharge-injunction violation.
    type: do
    audit_question: For every reaffirmation [LENDER] holds, can [LENDER] evidence (i) tracking of the §524(c)(4) rescission window (later of discharge or 60 days post-filing), (ii) intake channels for borrower rescission notices, and (iii) cessation of personal-liability collection on receipt of a timely rescission?
    program_review: Does the program track the §524(c)(4) rescission window (later of discharge or 60 days after filing), provide an intake channel for borrower rescission notices, and stop personal-liability collection on a timely rescission?
    file_review: 'On reaffirmation files, start with the notes: confirm the window was tracked and that any rescission notice received triggered cessation of personal-liability collection. Spot-check timing against the filing/discharge dates.'
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: bankruptcy_specialist
    secondary_owner_role: default_servicing_analyst
    cadence: per-reaffirmation
    consequence: Discharge-injunction violation under §524(a) and contempt exposure for continued collection on a rescinded reaffirmation.
    tags:
      - round-b
      - regulator-direct
      - bankruptcy
      - reaffirmation
      - rescission
      - promoted
    primary_source:
      tier: 1
      authority: 11 U.S.C. §524(c)(4)
      source_class: bankruptcy-statute
      source_url: https://www.law.cornell.edu/uscode/text/11/524
      snapshot_id: 15344ea1b340f1b6
      fetched_at: '2026-05-22T18:52:48Z'
      content_hash: sha256:888d69b388131efc725aa6f226329c1bf028cf34c1deed34bc7fc98ab9bbc72e
      paragraph_quote: the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim;
      drafter_attestation: |
        Copied verbatim from snapshot 15344ea1b340f1b6 (content.txt) at
        2026-05-22T19:20Z. Substring is the §524(c)(4) rescission window
        provision.
    promoted_at: '2026-05-22T19:07:35+00:00'
    promoted_from: bankruptcy-11usc-524-roundb-v1.yaml
  - id: bankruptcy-11usc-524-e-codebtor-not-affected
    canonical_id: bankruptcy-11usc-524-e-codebtor-not-affected
    section: 11 U.S.C. §524(e) — Codebtor liability and property liability not affected
    description: |
      Except as provided in §524(a)(3) (community-claim cases), discharge
      of a debt of the debtor does not affect the liability of any other
      entity on, or the property of any other entity for, such debt.
      [LENDER] may pursue non-debtor codebtors and may enforce its lien
      against non-debtor-owned property (and, under §524(j) and
      foreclosure-law doctrine, may enforce its lien in-rem against the
      debtor's collateral) notwithstanding the discharge.
    type: do
    audit_question: For every discharged loan with a non-debtor codebtor or a continuing lien, can [LENDER] evidence (i) continued enforcement against the non-debtor codebtor as permitted by §524(e), and (ii) compliance with the personal-liability/in-rem boundary against the discharged debtor?
    program_review: Does the program account for the §524(e) boundary — permitting continued enforcement against a non-debtor codebtor and in-rem lien enforcement, while keeping personal-liability collection off the discharged debtor?
    file_review: On discharged loans with a non-debtor codebtor or continuing lien, read the notes to confirm enforcement was directed only at the codebtor / collateral and never at the discharged debtor personally. The compliance person judges whether any communication strayed across the personal-liability/in-rem boundary.
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: bankruptcy_specialist
    secondary_owner_role: foreclosure_specialist
    cadence: per-bankruptcy-event
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - bankruptcy
      - codebtor
      - lien-enforcement
      - promoted
    primary_source:
      tier: 1
      authority: 11 U.S.C. §524(e)
      source_class: bankruptcy-statute
      source_url: https://www.law.cornell.edu/uscode/text/11/524
      snapshot_id: 15344ea1b340f1b6
      fetched_at: '2026-05-22T18:52:48Z'
      content_hash: sha256:888d69b388131efc725aa6f226329c1bf028cf34c1deed34bc7fc98ab9bbc72e
      paragraph_quote: Except as provided in subsection (a)(3) of this section, discharge of a debt of the debtor does not affect the liability of any other entity on, or the property of any other entity for, such debt.
      drafter_attestation: |
        Copied verbatim from snapshot 15344ea1b340f1b6 (content.txt) at
        2026-05-22T19:20Z. Substring is the §524(e) codebtor / property
        preservation sentence.
    promoted_at: '2026-05-22T19:07:35+00:00'
    promoted_from: bankruptcy-11usc-524-roundb-v1.yaml
  - id: bankruptcy-11usc-524-c-reaffirmation-enforceability-enumerated-items
    canonical_id: bankruptcy-11usc-524-c-reaffirmation-enforceability-enumerated-items
    section: 11 U.S.C. §524(c) — Enforceability of reaffirmation agreement — enumerated items (chapeau recall fix)
    description: The enumerated provisions following the chapeau of 11 U.S.C. §524(c) — Enforceability of reaffirmation agreement, dropped by the original extraction and restored verbatim from the snapshot.
    type: do
    audit_question: ''
    program_review: ''
    file_review: ''
    judgment: false
    feeds: []
    workflow_phase: ''
    owner_role: ''
    secondary_owner_role: ''
    cadence: ''
    consequence: ''
    tags:
      - chapeau-recall
      - regulator-direct
      - promoted
    primary_source:
      tier: 1
      authority: 11 U.S.C. §524(c)
      source_class: bankruptcy-statute
      source_url: https://www.law.cornell.edu/uscode/text/11/524
      snapshot_id: 15344ea1b340f1b6
      fetched_at: '2026-05-22T18:52:48Z'
      content_hash: sha256:888d69b388131efc725aa6f226329c1bf028cf34c1deed34bc7fc98ab9bbc72e
      paragraph_quote: (1) such agreement was made before the granting of the discharge under section 727 , 1141 , 1192 , 1228 , or 1328 of this title; (2) the debtor received the disclosures described in subsection
      drafter_attestation: Captured verbatim (whitespace-normalized) from snapshot 15344ea1b340f1b6 as the enumerated list immediately following the chapeau 'scharge of such debt is waived, only if—'. List boundary captured conservatively — REVIEW the end boundary before promote.
    promoted_at: '2026-06-16T19:35:50+00:00'
    promoted_from: bankruptcy-11usc-524-chapeau-recall-v1.yaml
    source_provenance:
      source_id: bankruptcy-11usc-524
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      content_hash: sha256:888d69b388131efc725aa6f226329c1bf028cf34c1deed34bc7fc98ab9bbc72e
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Verbatim regulatory text (5)

Verbatim provisions from 11 U.S.C. §524 — Effect of discharge — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

11 U.S.C. §524(a)(2) — Discharge injunction against personal-liability collection

operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived; and

Source: 11 U.S.C. §524(a)(2) · source URL · snapshot 15344ea1b340f1b6

11 U.S.C. §524(c) — Enforceability of reaffirmation agreement

(c) An agreement between a holder of a claim and the debtor, the consideration for which, in whole or in part, is based on a debt that is dischargeable in a case under this title is enforceable only to any extent enforceable under applicable nonbankruptcy law, whether or not discharge of such debt is waived, only if—

Source: 11 U.S.C. §524(c) · source URL · snapshot 15344ea1b340f1b6

11 U.S.C. §524(c)(4) — Debtor rescission window for reaffirmation

the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim;

Source: 11 U.S.C. §524(c)(4) · source URL · snapshot 15344ea1b340f1b6

11 U.S.C. §524(e) — Codebtor liability and property liability not affected

Except as provided in subsection (a)(3) of this section, discharge of a debt of the debtor does not affect the liability of any other entity on, or the property of any other entity for, such debt.

Source: 11 U.S.C. §524(e) · source URL · snapshot 15344ea1b340f1b6

11 U.S.C. §524(c) — Enforceability of reaffirmation agreement — enumerated items (chapeau recall fix)

(1) such agreement was made before the granting of the discharge under section 727 , 1141 , 1192 , 1228 , or 1328 of this title; (2) the debtor received the disclosures described in subsection

Source: 11 U.S.C. §524(c) · source URL · snapshot 15344ea1b340f1b6