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Discharge vs. dismissal

| Jan 25, 2010 | Chapter 13 Bankruptcy, Chapter 7 |

Clients often use the terms “discharged” and “dismissed” interchangeably; however, their significance is extremely important because they have an opposite effect on whether or not you have to pay certain debts back.

A discharge releases the debtor from the personal legal liability for certain types of debt. In other words the individual would not be required to pay those debts that have been discharged.

A dismissal means that the case concluded before a discharge could be entered. In other words the individual is in the same position, with regards to their debts, as they were before they filed.

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