What is the difference between a discharge and a dismissal?

The difference between a discharge and a dismissal in Virginia bankruptcy law is quite significant. A discharge is the legal process by which certain debts are forgiven and the debtor is no longer obligated to pay them. This occurs when a bankruptcy case is approved by the court and all of the the debtor’s obligations are cleared. A dismissal, on the other hand, is when a bankruptcy case is closed without the debtor being relieved of any obligations. This occurs if the court rules that the bankruptcy case was filed in bad faith or if the debtor failed to meet certain filing requirements. A dismissal does not discharge any debts that the debtor owes. The debtor is still legally responsible for these debts and must continue to make payments on them or possibly face legal consequences. If the debtor’s situation changes and they are able to make payments, they may file a new bankruptcy case in order to receive a discharge. It is important to note that while a dismissal may be reversed in certain situations, the debt the debtor previously owed will remain in place. This means that the debtor must still make payments even after the case has been dismissed. It is important to understand the difference between discharge and dismissal when filing for bankruptcy in Virginia in order to best protect one’s finances and rights.

Related FAQs

How do I convert my bankruptcy case from a Chapter 7 to a Chapter 13?
What is the difference between a joint bankruptcy filing and an individual filing?
What is creditor reaffirmation?
Can I get a loan after filing for bankruptcy?
How does filing for bankruptcy affect my retirement benefits?
Which debts cannot be discharged in bankruptcy?
Is there a deadline for filing for bankruptcy?
Is it possible to have a bankruptcy case dismissed?
Will I lose my property if I file for bankruptcy?
Does filing for bankruptcy eliminate debts such as child support and alimony?

What is the difference between a discharge and a dismissal?

Related FAQs

Related Blog Posts