A Chapter 7 discharge when the court orders a debtor to be released from dischargeable debts, and orders the creditors not to attempt to collect from the debtor. The person who filed the bankruptcy and receives the court order, does not have to re-pay the debt that is allowed to be in the bankruptcy. Not all debts, however are dischargeable.
Also, a chapter 7 discharge releases only the person or persons who filed it. So if there is a co-signer or another person who is responsible for the debt, this person remains liable for the debt even if one co-signer or other responsible person receives a bankruptcy discharge.