Bankruptcy Discharge vs. Dismissal

discharge v dismissal pic

When you are considering filing a Chapter 7 or Chapter 13 case, there are several legal terms that you will hear and it is important to understand what they mean. Two of the most important terms to familiarize yourself with are “discharge” and “dismissal.”

Discharge

One of the main goals of filing a personal bankruptcy is to discharge or eliminate your debt. A discharge order from the bankruptcy court cancels your liability to pay the discharged debts. In most cases, your discharge means you are no longer obligated to pay your credit card bills, medical bills and other types of debts you included in your filing.

Dismissal

You typically want to avoid having your bankruptcy case dismissed at all costs. A dismissal usually means that something has gone wrong in your filing and the court is closing your case without discharging your debt. A dismissal acts as if your bankruptcy case was never filed and you remain liable to pay all of your creditors. It also means that you are no longer protected by the automatic stay and collection activity can re-commence against you.

Discharge and dismissal are examples of legal jargon that sound similar, but have opposite meanings. We understand that filing a Chapter 7 or Chapter 13 case can be intimidating, especially when you’re not familiar with the terminology being used by the court. We will be by your side every step of the way and make sure you understand what decisions are being made in your case. Don’t delay obtaining the debt relief you need because you are scared of the process. Let us help.

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment.


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