What is the difference between a discharge and a dismissal?

The two main outcomes in a North Carolina bankruptcy case are a discharge of debts and a dismissal of the case. A discharge is a court order that permanently eliminates (discharges) certain debts. Some debts are not dischargeable, such as student loans, certain taxes, and alimony. A discharge prevents creditors from attempting to collect on a debt from the debtor. A dismissal of a case is when a bankruptcy case is closed before the debtor receives a discharge. A dismissal is not a favorable outcome for a debtor, because it does not eliminate their debts. Creditors may still attempt to collect the debt owed to them. A dismissal may occur for a few reasons. If a debtor fails to provide the court with the necessary documentation to continue the bankruptcy process, or if they are found to have committed fraud, a case can be dismissed. A dismissal can also occur if the debtor does not attend court-ordered meetings or pay court costs. In summary, a discharge is a court order that eliminates certain debts, but a dismissal is when a bankruptcy case is closed before the debtor receives a discharge. A dismissal will not discharge debts, and creditors may still attempt to collect what is owed to them.

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What is the difference between a discharge and a dismissal?

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