Dismissed or Discharged?

What is the difference between a bankruptcy case being dismissed and discharged?  It is common to confuse these two terms in reference to bankruptcy proceedings.  One of these is positive, while the other is negative. 

You may not be able to guess now which is which, but it’s important to know that if your bankruptcy case is dismissed, it is not a good thing. 

In order to get the full benefit of a bankruptcy case and the lasting effects of wiping out all of your debt you must receive a discharge.

In contrast, if your case is dismissed that means that your case was unable to complete the process.  It may have been dismissed because you failed to file all of the proper paperwork.  It may have been dismissed because you didn’t make your planned payments as required by a Chapter 13 bankruptcy filing. 

It could have been dismissed if you did not attend the required Meeting of Creditors.  Whatever the reason, if you are dismissed your debts will not be discharged.  You will still be responsible for all your payments and all your penalties and interest will be reassessed. 

It’s very important to understand the difference between these two potential outcomes and work towards a positive one.  The best way to avoid a negative outcome is to hire a competent bankruptcy attorney to help you through the bankruptcy process and ensure your debt is properly discharged.