Bankruptcy Dismissal vs Discharge: Definition, Process, Cost

File for Bankruptcy Bankruptcy Dismissal vs Discharge: Definition, Process, Cost

All About Bankruptcy Dismissal vs Discharge

Making the decision to file for bankruptcy is a difficult one. You've already spent considerable effort navigating the bankruptcy process; now you're confronted with dissolution and discharge options. Keep an eye on how the bankruptcy concludes!

DoNotPay may aid you in filing for bankruptcy and resolving challenging questions. Our technology streamlines the filing process. Discover how DoNotPay may assist you in making this difficult financial decision.

What is Dismissal?

There is an end to both Chapter 13 bankruptcy and Chapter 7 bankruptcy, regardless of the choice of the three types of bankruptcy. Having your bankruptcy dismissed is a bad occurrence in your bankruptcy history. Dismissal indicates that something was done incorrectly, and the court finds sufficient grounds to prevent the proceedings from moving further. This may involve the following:

  • Failure to adhere to the regulations of the court
  • Violations of the procedural rules
  • Failure to complete credit counseling or pass a means test
  • Problems with jurisdiction or residency
  • Lack of punctuality in the submission of paperwork and forms like your debt verification and 609 letters information

What is Discharge?

However, finishing bankruptcy may be a cause for happiness! A discharge implies that you have made it through the arduous years and have concluded of your commitment. You will be granted the following benefits if you get a discharge:

  1. Release from the obligations of paying unsecured debt and other debt as agreed upon confirmation
  2. Release of wage garnishments
  3. Release of retained lawyer

This marks the conclusion of your bankruptcy proceedings. Once your claims have been dismissed, creditors will not be able to pursue you for the remaining balance of your obligations. In order to release your garnishments and payments to the trustee, you must first contact the trustee. You must continue to make on-time payments against the debts that will continue to accrue (house, car, and other debts not included).

DismissalDischarge
Prevention of the court proceedings from moving forward due to a filling or technical error.The conclusion of the bankruptcy proceedings.

What Bankruptcy Cannot Do

Generally speaking, most individuals regard bankruptcy to be a final choice, a last-ditch effort to get themselves out of their current predicament. However, it does not simply erase everything from the record of history. Secured commitments must be met, even if it means deducting money from your paycheck. You will not be able to avoid paying taxes, school loans, alimony, or child support.

How Long Does it Take to File for Bankruptcy?

Bankruptcy is a time-consuming procedure. It is anticipated that the filing process will take around five months. During that time period, your creditors will be informed and given the option to file claims against you, after which your assets will be liquidated. Following that, a hearing will be conducted to determine whether you should be declared bankrupt. Remember bankruptcy will stay on your credit report for 7-10 years!

How to File Bankruptcy on Your Own

The majority of people contact a bankruptcy lawyer to determine their eligibility, kind, and timing of bankruptcy. Then you pay the retainer, and filing fees, provide the necessary documents, and the lawyer puts everything together. If you want the hearings and proceedings to continue, you must continue paying the trustee. The process is lengthy and requires consultation with your attorney.

Is There an Easier Way to File Bankruptcy?

If you're not sure where to begin when it comes to filing bankruptcy, DoNotPay has you covered in five simple steps:

  1. Search for File for Bankruptcy on DoNotPay. 
  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report. 
  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you. 
  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms. 
  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court. 

Once done, the court will give you:

  • Your bankruptcy case number
  • The name of your bankruptcy trustee
  • The date, time, and location of your meeting with your trustee

Your case has been submitted at this moment! Congrats! You are now protected from any debt collectors by the automatic stay. Your trustee will then call you to request further financial records. Attend your meetings and finish the post-bankruptcy debtors course!

Why Use DoNotPay to File Bankruptcy

  • DoNotPay provides several factors to aid you in declaring bankruptcy. DoNotPay may assist you:
  • DoNotPay files exist in every company and area.
  • Rapid filing and responses
  • Secure filing with all essential documentation included
  • For the greatest results, follow this simple guide.

What Else Can DoNotPay Do?

Have you finally completed your bankruptcy filing? DoNotPay may assist you in saving even more time and money by providing documentation for the following:

Put your trust in DoNotPay to help you through this difficult period!

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