Discharge: The Legal Entity in the Management of Bankruptcy crisis (By Emphasis on the United State Law)

The legislator needs to legal entity to management of financial crisis of bankrupts in order toyour goals. The legal entity that plays an important role in management of financial crisis of bankrupts is “Discharge”.The definition of discharge is that the bankrupt discharge from payment of debts after the bankruptcy proceeding. The goal of discharge is “fresh start” of bankrupt. The positive effects of discharge are Thebankruptencouragingeconomicactivity, The disappearance ofthe shadowlabor market, Imposeharmonpeople whohavemorefinancialpower, Economic benefit of society and … . The negative effect is negative impactonthe credit marketandthe creditor’sdiscontent. The biggest challenge that this legal entityis facing, is the immorality ofit. The discharge is not history in Iranian legal system, and creditor can claim this credit from bankrupt after the bankruptcy proceeding.