What is the difference between a discharge and a dismissal?

The difference between a discharge and a dismissal in California bankruptcy law is that a discharge is when a debtor’s debts are forgiven and the debtor is released from any obligation to pay the debt. A discharge is the primary goal of a bankruptcy filing, and it can be granted to debtors after they have successfully completed all of their required bankruptcy proceedings. In contrast, a dismissal is when a bankruptcy filing is dismissed, usually with prejudice, and the debtor is not discharged from their debts. Dismissals occur for a variety of reasons, including if the debtor does not complete all of their required bankruptcy proceedings in a timely manner, if the debtor fails the means test, or if the debt is found to be fraudulent. However, in some cases, the bankruptcy filing can be dismissed without prejudice, meaning that the debtor may be able to re-file later if they are able to rectify the issues that led to the dismissal. Therefore, the primary difference between a discharge and a dismissal in California bankruptcy law is that a discharge cancels the debtor’s debt and releases them from any obligation to pay it, while a dismissal is when a bankruptcy filing is dismissed, usually with prejudice, meaning the debtor is not discharged from their debt.

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