If you’re considering bankruptcy, it’s important to understand how your case could end and how to avoid a frustrating outcome. Most filers hope for a discharge, which wipes out certain debts. However, some cases end in dismissal, which offers no relief at all. Knowing the difference can save you time, money, and stress.
A discharge is the ideal outcome for most debtors. In Chapter 7, it usually happens a few months after you file, while in Chapter 13, you’ll receive it after completing your repayment plan. Once the discharge is granted, creditors can’t come after you for those debts anymore.
That said, not all obligations go away. Student loans, some taxes, and child support may still be collectible. Also, liens on your property might still be valid even if the debt itself is discharged.
Dismissal is the opposite. It means the court has closed your case without granting relief. Creditors are free to resume collection efforts like garnishments, foreclosures, or lawsuits.
Dismissals often happen when a filer misses a key requirement, such as failing to file schedules, skipping the required credit counseling, or not showing up to the 341 meeting with creditors. In Chapter 13, even one missed payment might trigger dismissal.
If you’re filing, keep these basics in mind:
Bankruptcy comes with rules, and they’re easy to trip over if you’re unfamiliar. At O’Brien Law Firm, LLC, we help clients throughout the Greater Memphis Area avoid common mistakes, stay on track, and work toward a discharge whenever possible.
Reach out at 662-672-7619 or use our online form to schedule a consultation. Let’s walk through your options together.
