What is a bankruptcy discharge?
When a bankruptcy case ends, it is either discharged or dismissed. This article will define both terms, and the differences between a bankruptcy discharge vs. dismissal. A discharge is a court order to discharge all debts—including credit card debts, medical bills, personal loans, and payday loans—that were incurred before the date of filing, except for certain types of obligations. A discharge releases you from personal liability for these debts and stops creditors from trying to collect them.
A bankruptcy discharge will stop your creditors from calling you and garnishing your wages. It will eliminate the debt that is discharged in bankruptcy. The bankruptcy discharge also stops foreclosure and vehicle repossession. If you have income and property, the bankruptcy discharge will eliminate the debt that is dischargeable under the Bankruptcy Code. All of this means one thing: your financial worries will be over. The bankruptcy discharge gives you a fresh start. Instead of having a cloud of debt hanging over your head, you can rebuild your credit and start saving money.
What is a bankruptcy dismissal?
A dismissal is a legal term used to describe the cancellation of a bankruptcy case. The dismissal is the final step in Chapter 7 or Chapter 13 discharge process. If a debtor hasn’t filed all the necessary forms or documents, the court will dismiss that case and will not discharge the debtor. If a debtor has filed all the necessary documents, and the court has reviewed those documents, then the court will issue a dismissal. The dismissal is the final step in Chapter 7 or Chapter 13 discharge process. When bankruptcy is dismissed or canceled, the automatic stay protection will end and the creditors can then legally pursue the debtor for payment on the debts that remain.
In most cases, if you are eligible for a dismissal, you will be able to proceed with your life as if the bankruptcy never happened and will be considered to have a clean financial slate. If you are struggling with debt after your case has been dismissed, you should seek help from a bankruptcy lawyer. He or she can provide you with advice on how to protect yourself from lawsuits from creditors, how to deal with collection agencies, and how to find ways to pay off your debt.
In conclusion, bankruptcy discharge vs. dismissal are two different forms of legal relief, with both providing the opportunity for an individual or entity to be relieved from debt. A bankruptcy discharge is a judgment by the court, which relieves a debtor from all liability for all debts discharged in the bankruptcy case. A dismissal is a decision by the bankruptcy court that a debt holder is not entitled to a discharge, and that the creditor should no longer be listed as a creditor in the bankruptcy case.