CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

Bankruptcy Dismissal vs Discharge: What’s the Difference?

Bankruptcy Dismissal vs Discharge: What’s the Difference?

BankruptcyThe difference between bankruptcy dismissal and bankruptcy discharge

For many, bankruptcy is unfamiliar territory and there are a lot of things that are new. For instance, filing for bankruptcy typically results in learning a lot of new terms. Understanding these terms and knowing the difference between ones that seem similar can be frustrating, especially if you’re already feeling overwhelmed and intimidated by the experience.

One of the most common points of confusion in bankruptcy is the difference between dismissals and discharges. You’re likely to hear both terms when you decide to file, so understanding what they mean before you get started can help you feel better about your situation.

What is Discharge in Bankruptcy?

A discharge in bankruptcy is what happens when the bankruptcy court grants the elimination of a debt. This means the creditor is no longer legally allowed to pursue you for payment of the debt even though you never paid it.

Bankruptcy discharges occur in both Chapter 7 and Chapter 13, but discharges are limited in Chapter 13 and debtors are usually required to pay a portion of the debt over time before a discharge occurs.

Discharge typically takes a few months in Chapter 7 and 3 to 5 years in Chapter 13.

A bankruptcy discharge is a good thing and it’s one of the primary reason people file for bankruptcy, especially Chapter 7. Discharge gives you a clean slate with debt and allows you to begin rebuilding your credit and financial well-being without a debt hanging over your head.

What is a Dismissal in Bankruptcy?

On the other hand, a dismissal is not something you’re seeking when you file for bankruptcy. It’s a negative thing and avoiding dismissal is one of the primary reasons you should work with an experienced attorney when you decide to file for bankruptcy.

A dismissed bankruptcy case means it has been unsuccessful and the debtor is still responsible for the debt.

Dismissal can occur because paperwork isn’t filled out or filed properly. It’s also possible if someone fails to provide information required by the court when filing for bankruptcy. Another reason a case might be dismissed is that a debtor fails to meet obligations related to pre- or post-bankruptcy education, such as credit counseling.

There’s also a risk for dismissal if you submit false information knowingly or by mistake. The frightening thing about this is if you submit false information and the court believes you’ve done it intentionally, you can also be charged with bankruptcy fraud.

To learn more about what happens when bankruptcy fraud is suspected, check out this information from Nolo.com.

Dismissal can also happen in Chapter 13 if a debtor fails to meet his or her payment obligations during the payment plan.

Having Debt Discharged and Avoiding Dismissal during Bankruptcy

The important thing to remember about bankruptcy is that your goal is getting a fresh financial start. This is the case with Chapter 7 or Chapter 13, even though it takes a while longer to achieve your goals in Chapter 13. Having your debt discharged is your ultimate goal and you need to do whatever the court requires to achieve this.

An experienced bankruptcy attorney can help you avoid a bankruptcy case dismissal and get debt discharged. If you have questions about the process or you’d like to learn more about filing for bankruptcy, contact the Law Office of Robert M. Geller at (813) 254-5696 to schedule a free consultation to discuss your financial situation.

Tampa Bankruptcy Law Blog

Why Filing for Bankruptcy Can Be a Smart Decision

Bankruptcy can be a smart decision Everyone wants to be smart, right? They want to make the best choices and...
Read More
Will My Spending Be Monitored If I File for Bankruptcy?

Will My Spending Be Monitored If I File for Bankruptcy?

Bankruptcy and Spending Bankruptcy can offer many advantages, but it can also mean exposing your financial life to the world....
Read More

Buying a Home after Bankruptcy

Getting a Mortgage After Bankruptcy Many people assume buying a home after filing for bankruptcy is impossible. As a matter...
Read More

Bankruptcy Red Flags: How to Avoid Suspicion of Fraud When You File

Bankruptcy Fraud Red Flags Filing for bankruptcy is a complicated process. It’s possible to file on your own, but it...
Read More

Can Bankruptcy Help After a Creditor Has Filed a Lawsuit?

Bankruptcy Timing Timing in bankruptcy is very important. A bankruptcy attorney can help you determine the best time to file,...
Read More
Has Life Pushed You Into Bankruptcy? How to Make the Best of Your Situation

Has Life Pushed You Into Bankruptcy? How to Make the Best of Your Situation

How to make the best out of Bankrutpcy Some people find themselves in financial turmoil because of choices they’ve made....
Read More
Sneaky Ways Debt Collectors Try to Take Your Money after You File for Bankruptcy and How to Protect Yourself

Sneaky Ways Debt Collectors Try to Take Your Money after You File for Bankruptcy and How to Protect Yourself

Bankruptcy and Sneaky Debt Collectors Filing for bankruptcy triggers something known as the “automatic stay.” This is a legal term...
Read More
What is an Obligatory Debt and How Is It Affected by Bankruptcy?

What is an Obligatory Debt and How Is It Affected by Bankruptcy?

Obligatory Debts and Bankruptcy There are all different kinds of debts and all of them are affected differently when you...
Read More

Are You Too Old to File Bankruptcy? What Seniors Need to Know about Bankruptcy?

Filing for Bankruptcy in Old Age If you subscribe to the adage “you’re only as old as you feel,” chances...
Read More
How are Co-Signers Affected by Bankruptcy?

How are Co-Signers Affected by Bankruptcy?

Co-signers and Bankruptcy If you’re considering co-signing a loan for a friend or family member, or you have a loan...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2018Robert Marc GellerReviewsout of 32 reviewsLEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online   Bankruptcy Courses   

Tampa Office

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405


Tampa Law Office Map

St. Petersburg Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: (727) 532-3939


Map and Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320





Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.