What Is The Difference Between A Bankruptcy Discharge And Dismissal?

This is very simple in concept and in practice. A bankruptcy discharge bars creditors who are subject to the discharge from ever taking any collection action against the individual who filed for bankruptcy protection. It is issued at the end of an ordinary consumer case and effectively concludes the case successfully (though the court must still administratively close the case after the discharge is granted).

Dismissal means that the bankruptcy case has been thrown out of the bankruptcy courts without a discharge being granted. Creditors are once again free to pursue collection of their debts against the party who filed for bankruptcy protection and no discharge is issued. Depending on the circumstances, an person may be able to correct the issue that led to the dismissal of the case and have the order of dismissal vacated. If not, the person may be able to file a new bankruptcy case after the dismissal of the prior one if the reasons underlying the prior dismissal have been addressed.

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