In a Chapter 13 bankruptcy, what is the difference between a dismissal and a discharge?
A Chapter 13 bankruptcy may be dismissed at anytime; by the borrower, as a voluntary dismissal, or by the court if borrower fails to comply with the required payment schedule. Upon completion of the payment plan, the borrower will receive a Chapter 13 discharge. The court may also discharge a Chapter 13 case prior to receiving all scheduled payments if they find that the borrower made a sufficient amount of payments and is unable to continue the plan due to extenuating circumstances.
