What's the difference between a dismissal and a discharge when it comes to a Chapter 13 bankruptcy?
Chapter 13 bankruptcy
In a friendly tone: A dismissal, or an absolute discharge, is the end result of a Chapter 13 bankruptcy. In order to receive this outcome, you must meet certain requirements and goals during your bankruptcy, including:
-Filing all of your documents on time
-Completing the means test
-Completing all credit counseling
When you successfully meet these requirements and goals, your bankruptcy petition will be dismissed and you will receive an absolute discharge. The difference between a dismissal and a discharge is that a dismissal does not require you to reimburse your creditors—you are simply excused from repaying your debts under the terms of Chapter 13. When you receive a discharge, on the other hand, you will likely be required to pay back at least some of your creditors, because it takes more to qualify for a discharge than it does to get a dismissal.
-Meeting with the trustee regularly (in person or by phone)
-Compiling and filing all monthly financial statements in a timely manner
Repayment
Most people who file for Chapter 13 bankruptcy will be in a repayment plan for three to five years. They're required to make monthly payments to a trustee, which are based on their income, and once they've paid off all of their debts, the trustee will write a report that the court uses to determine if the case was successful. Even if you live within your means and can pay your debts in full after the three-to-five-year period, it's possible that you may still need to file for Chapter 13 bankruptcy. A Chapter 13 bankruptcy is one way to discharge your debts, but it's more complicated than simply declaring yourself debt-free.
If you have any questions, you can get a free consultation with the Best Attorneys in Utah.
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West Jordan, UT 84088
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