What is the difference between a discharge and a dismissal?

A discharge and a dismissal are two different outcomes of a bankruptcy case in Delaware. A discharge is the legal process of releasing a debtor from liability for certain debts. This means that the debtor is no longer legally required to pay back the debt. A dismissal is the legal process of ending a bankruptcy case without offering the debtor a discharge. This means the debtor is still legally obligated to pay back the debt, but the bankruptcy case no longer protects the debtor from creditors. The most common type of discharge granted by the court is the Chapter 7 discharge, which releases the debtor from personal liability from all debts that arose before the bankruptcy case was filed. A Chapter 11, 12, or 13 discharge may be more limited and depend on the level of success in reorganizing the debtor’s finances. When the court dismisses a case, the debtor is still liable for the debts that were included in the case. Creditors can still come after the debtor for unpaid debts, though the dismissal may make it more difficult to do so. It may also allow the debtor to negotiate better repayment terms with the creditors. In Delaware, a dismissal of a bankruptcy case can be voluntary or involuntary. An involuntary dismissal happens when the court decides that the debtor is not eligible for bankruptcy protection or has done something wrong. A voluntary dismissal is when the debtor requests for the case to be dismissed.

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What is the difference between a discharge and a dismissal?

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