Bankruptcy Dismissed Vs Discharged
Difference Between Dismissal And Discharge
Not many people are familiar with bankruptcy and for this reason many people are not familiar with bankruptcy terms. “Dismissed” and “discharged” are two terms that sometimes cause confusion for people who file for bankruptcy for the first time or are thinking of filing. An experienced bankruptcy lawyer can answer all the questions you have about what various terms mean when you file for bankruptcy.
Discharge In Bankruptcy
A bankruptcy discharge is the most desired outcome for people looking to eliminate debt through bankruptcy because it means the court has granted elimination of debt. Your debt can be discharged when you file for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. Under a Chapter 7 bankruptcy a discharge can occur in a few months but in a Chapter 13 it can take 3 to 5 years. Most people that want to start afresh often file under Chapter 7 because it allows for complete elimination of debt. Under Chapter 13 you still have to pay a significant amount of your debt before you get a bankruptcy discharge.
Dismissal In Bankruptcy
A dismissal in bankruptcy is an action that you should not desire because once a court dismisses your bankruptcy case you are still responsible for the debt. Most of the time bankruptcy cases are dismissed because the debtor presents incomplete paperwork or the debtor has not met certain obligations before or after filing for bankruptcy. For example, if you fail to list all your assets and debts while filing for bankruptcy the case can be dismissed. Under a Chapter 13 bankruptcy, your case can be dismissed if you fail to make payments. There have also been cases that were dismissed because the debtor intentionally or unintentionally submitted false information. To avoid a dismissal and have your debt discharged, talk to an experienced bankruptcy lawyer
Can You Request For Voluntary Bankruptcy Dismissal
You can file a motion to voluntarily dismiss your bankruptcy case, but the court may or may not approve. Whether or not the court approves the dismissal is determined by the chapter number of the bankruptcy case and the prior history of the debtor in bankruptcy. People who filed for a Chapter 7 bankruptcy sometimes realize that they’ll lose more of their property under Chapter 7 and decide to request for a voluntary dismissal of the case. But it is very difficult to get a bankruptcy dismissal for a Chapter 7 bankruptcy case. It is easier backing out of a Chapter 13 but you should know that after getting a dismissal, the lender may file a motion for the automatic stay to be lifted.
Filing After A Dismissal Or After A Discharge
If the court dismisses your case without prejudice, there is no time restriction on when you can refile for bankruptcy. For cases dismissed with prejudice, there is a specified time period to refile that is 90 days to one year. If you were granted a discharge in your Chapter 7 bankruptcy case, you have to wait 8 years before you file for another Chapter 7 bankruptcy. You only have to wait for 4 years after getting a Chapter 13 bankruptcy.