What is the difference between a discharge and a dismissal?

There are two types of outcomes for a bankruptcy petition that is filed in the state of Texas: a discharge and a dismissal. A discharge is an order that is issued by the court that is legally binding and should be obeyed. It legally eliminates any debts or liabilities that are eligible for discharge that were listed in the bankruptcy filing. This means that once the discharge is issued, the debtor no longer has any legal responsibility for that debt. A dismissal is an order from the court that the bankruptcy petition is dismissed. This means that it is not approved, and all of the debts and liabilities that were listed in the filing remain the same. The creditor may still pursue collection of the debt in accordance with state law, and no protection is given to the debtor from the court. In summary, a discharge is a court-approved status that lifts the legal responsibility to repay certain types of debt, whereas a dismissal is a court-ordered denial of the bankruptcy filing which leaves the debtor responsible for repaying the debt.

Related FAQs

What kind of debt relief is available to married couples filing for bankruptcy?
Can I get a loan after filing for bankruptcy?
Are there additional filing fees associated with filing for bankruptcy?
Is it possible to have a bankruptcy case dismissed?
What is creditor reaffirmation?
Is bankruptcy the best option for me?
How do I know if I qualify for a Chapter 13 bankruptcy?
What types of debt can be discharged through bankruptcy?
What debts can I discharge in bankruptcy?
What is the difference between secured and unsecured debt?

What is the difference between a discharge and a dismissal?

Related FAQs

Related Blog Posts