What is the difference between a discharge and a dismissal?

The difference between a discharge and a dismissal of a bankruptcy in Maryland is significant. A discharge is a form of relief that is granted by a court and prohibits creditors from legally attempting to collect payment from a debtor. A dismissal of a bankruptcy is an order by the court that ends the bankruptcy proceeding and is not a grant of relief to the debtor. A discharge is the end result of a successful bankruptcy. It is a court order that relieves the debtor of all debt, which is no longer legally enforceable. This order also eliminates the debtor’s personal liability for the discharged debt. In essence, a discharged debt is wiped away and the creditor may no longer pursue the debt. A dismissal of a bankruptcy is a decision by the court to terminate the bankruptcy proceeding. This occurs when the debtor fails to comply with legal requirements or properly complete the bankruptcy process. In a dismissal, creditors are still allowed to pursue collection of the debt. This means that any collection activities such as lawsuits, wage garnishments, or adverse credit reporting that were previously stayed are allowed to proceed. Therefore, the difference between a discharge and a dismissal is that a discharge relieves the debtor of personal liability for the debt and prohibits creditors from attempting to collect payment, while a dismissal does not relieve the debtor of personal liability and allows creditors to pursue payment.

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What is the difference between a discharge and a dismissal?

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