What is the difference between a discharge and a dismissal?
A “discharge” occurs when your bankruptcy completes successfully (i.e. – you have met all requirements). In Chapter 13, the discharge is an order from the Court wiping out and absolving you of all debts you were not required to pay through your Chapter 13 plan (except student loans), and rendering all debts repaid under the plan paid-in-full. In Chapter 7, the discharge is an order from the Court wiping out and absolving you of all debts other than taxes, alimony/child support, student loans and any debt you successfully reaffirmed. On the other hand, a “dismissal” occurs when you fail to complete your bankruptcy successfully. A dismissal is an order from the court terminating your case without a discharge – meaning no unpaid debt is wiped out or absolved.
