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.

What Is a Discharge in Bankruptcy?

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.

What Is a Dismissal?

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.

Tips to Avoid a Case Dismissal

If you’re filing, keep these basics in mind:

  • File on time: Make sure all documents, like your list of debts, income, and property, are submitted accurately and promptly.
  • Attend all meetings: The trustee and creditors may have questions, and skipping these appointments can cost you your case.
  • Complete your courses: Both pre-filing and post-filing education sessions are required.
  • Stay in contact: Let your attorney know if your income changes or if you’re struggling to make payments.

How Legal Guidance Helps

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.

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