Difference : Dismissal and Discharge
I want you to understand the difference between a bankruptcy dismissal and a bankruptcy discharge. When you’ve filed for bankruptcy, whether in Maryland, Pennsylvania or elsewhere, discharge is the desired outcome of your filing.
A bankruptcy discharge occurs when you have done everything you’re supposed to do. The court enters a discharge once:
• you have confirmed a bankruptcy plan,
• you have made all of the payments under a plan, or
• when nobody objects to your bankruptcy in a Chapter 7 case,
Once your discharge has been entered, your creditors
1. can’t sue you,
2. can’t get judgments, and
3. cannot enforce their rights against your post-bankruptcy earnings. I like to call this the “pot of gold at the end of the bankruptcy rainbow.”
Once you have filed a bankruptcy case, the court has jurisdiction over you and your property. If the court decides that it no longer has jurisdiction, your case is dismissed.
Dismissal occurring after discharge can end up being a favorable development for you.
If dismissal occurs before discharge, you don’t qualify for a discharge. Dismissal occurring before discharge usually is not a favorable development for you. For more information, read How Does a Maryland Bankruptcy Dismissal Differ from a Discharge?
If you have questions about a bankruptcy being dismissed or discharged, please pick up the phone and call me at telephone number 410-484-9000. I’d love to hear from you.