discharged bankrupt definition

discharged bankrupt

Bankrupt person who is granted an order of discharge by a court. This order, in general, releases the bankrupt from all current debts ('wipes clean' the financial slate) and frees him or her from the legal disabilities of a bankrupt. It gives the debtor a chance to make a fresh start: he or she can again legally apply for credit, start a business, or hold a public office or the office of a company director. Easy accessibility to computerized personal financial histories, however, makes such new beginnings easier in theory than in practice. See also undischarged bankrupt.

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