Receiving a bankruptcy discharge order from the bankruptcy court is the goal when you file for bankruptcy.
A bankruptcy dismissal is very different from a bankruptcy discharge. In fact, they are complete opposites. In short, a bankruptcy discharge releases you from the obligation to pay back certain debts, while a bankruptcy dismissal means your bankruptcy case ended, but you are still obligated to pay back your debts.
Bankruptcy Discharge Explained
A bankruptcy discharge is a court order that releases you from personal liability on certain debts. You are no longer legally required to pay back any debts that are part of your bankruptcy discharge. Further, the creditors of discharged debts can never legally attempt to collect payment on those debts.
The discharge of debts is the biggest benefit of bankruptcy. It is the thing that actually erases your dischargeable debts. In general, unsecured debts, including credit card and medical debts, are dischargeable debts. To explore which of your debts are discharged in bankruptcy, come meet with us for a free consultation!
To learn more read our in-depth article The Bankruptcy Discharge Order.
Bankruptcy Dismissal Explained
A bankruptcy dismissal is a court order that ends your bankruptcy case prior to receiving a bankruptcy discharge. If your case is dismissed, then you are still legally obligated to pay back the debts you owed prior to filing for bankruptcy.
Having a bankruptcy case dismissed may put you in a worse situation than you were in before you filed. If your case is dismissed, your creditors are legally allowed to resume collection actions against you. This means wage garnishments, bank levies, foreclosure proceedings, repossessions, and even collection phone calls can come back to life.
Cases are dismissed for a myriad of reasons; however, many causes of dismissal can be prevented. Some common reasons for case dismissal include:
- Missing monthly Chapter 13 payments.
- Not timely filing the certificate of completion for debtor education and accompanying froms.
- Not providing the trustee with all requested documents.
- Not filing necessary amendments to the bankruptcy petition.
To ensure your bankruptcy case goes as smoothly as possible hire a bankruptcy attorney who you feel you can trust. For some tips on choosing the right bankruptcy attorney for you, click here.
If you’ve had a bankruptcy case is dismissed recently, we encourage you to speak with an experienced bankruptcy attorney so you can understand what happened and what your options to move forward are.
When you work with us we’ll make sure you understand what your bankruptcy discharge will mean for you.
At the Law Offices of Barbara B. Braziel we file hundreds of successful Chapter 7 and 13 bankruptcy cases every year. But our clients are never just a number. You will not be left in the hands of a paralegal. You will have access to your attorney throughout your bankruptcy case.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.