Series 50: Discharge

Discharge

When the plan is approved, the municipality will receive a discharge, which prevents anyone from taking actions against the municipality designed to recover debt payments outside of the plan.

In order for the municipality to receive a discharge:

• • The court must approve the plan.
• • The municipality must make a deposit of money with the disbursing agent of the court; this is a deposit against payments the municipality has agreed to make to debtors.
• • If the deposit consists of securities, the court must determine that the obligations they represent are valid.

The court has 180 days from the confirmation to