What is the difference between a discharge and a dismissal?

A discharge and a dismissal are different terms that refer to the outcome of a bankruptcy case in Maine. A discharge is a court order that permanently forgives all debts that were listed on a debtor’s bankruptcy filing. This means that creditors and collection agencies who were owed money are no longer able to pursue any action to collect on the debt. A dismissal, on the other hand, is a court order that stops the bankruptcy case without any additional action taken on the debts included in the filing. A dismissal does not relieve the debtor of their debts, and creditors may continue to pursue collection activities such as garnishment of wages. In addition, each type of outcome has different effects on the debtor’s credit report. A discharge generally will stay on the debtor’s credit report for seven years, whereas a dismissal does not cause any adverse affects to the debtor’s credit score or report. In summary, a discharge is a court order that eliminates the obligation to repay one’s debts, while a dismissal does not eliminate the debt but rather stops the bankruptcy proceedings from continuing without relieving any debt. Discharges can appear on the debtor’s credit report for seven years, while dismissals do not have any effect on a credit report.

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What is the difference between a discharge and a dismissal?

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