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.

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What is the difference between a discharge and a dismissal?

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