Legal Question in Bankruptcy in Minnesota

Re: Discharged vs Dismissed Bankruptcy

Well, that's an interesting question.

In general, getting dismissed is usually a bad thing. It usually refers to being thrown out of court one way or another. There are dismissals where you may be able to turn around and file again almost right away, and there are dismissals where you can't file again for several years. Knowing exactly what kind of dismissal it is can be pretty important.

A discharge, on the other hand, is an order from the court that says your debts are gone and the creditors are to leave you alone. This is the usual goal of filing the case in the first place. This is almost always a good thing, a good deal.

A discharge discharges everything that is dischargeable. I'm not trying to be funny here, but I don't know how else to say it. There are some debts that don't get discharged, even though you have received a discharge. These usually include taxes, child support and alimony, student loans, injuries someone else received while you were driving drunk, fines and penalties owing to a governmental unit, and a few other things. Most debts, however, are discharged - such as credit cards and medical bills.

I have a notion you may have tried to file without a lawyer. Your story could be a good example of why that's a really bad idea. There's a kind of dismissal that they call the atomic bomb of bankruptcy law. This is where you are dismissed without a discharge, but the trustee still gets to take your non-exempt assets and distribute them to your creditors, and you can't file Chapter 7 again for eight years. Bankruptcy involves all sorts of serious risks, of which this is one, and you need a lawyer to help you steer clear of them.

Good luck.

This response does not create an attorney-client relationship, and is for general information purposes only.