There is some confusion from clients about bankruptcy discharge and bankruptcy dismissal. Some clients use those terms interchangeably. However, the two terms mean very different things.
A bankruptcy discharge is desirable at the end of a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy case. It means that you successfully completed your bankruptcy case and eliminates dischargeable, unsecured debts and eliminates your personal liability on the debt.
A bankruptcy dismissal means that you lost your bankruptcy case and it occurs before the discharge of your bankruptcy case. When your bankruptcy case is dismissed, you are still personally liable for your debts. This means that your creditors can file a lawsuit to collect from you. Once your creditors received a judgment, you should expect a wage garnishment, bank account levy, or judgement lien or judicial lien on your house or other real estate unless you take steps to prevent it.
However, sometimes a debtor may want a bankruptcy dismissal if he or she no longer needs bankruptcy protection.
Bankruptcy dismissal usually comes from the Trustee's or the Sacramento or Modesto Bankruptcy Court's Motion to Dismiss due to failure to file or produce documents or attend the 341 Meeting of Creditors. In a Chapter 13 Bankruptcy case, a dismissal usually results from debtors unable to timely pay their Chapter 13 Bankruptcy plan payments. You should always hire an experienced and local Sacramento bankruptcy attorney who is familiar with the local rules for Sacramento and Modesto Bankruptcy Court. My practice is exclusively concentrated in bankruptcy law in Sacramento and Modesto Bankruptcy Court. Residents of Solano, Yolo, Yuba, and Placer Counties CA will attend their 341 Meeting of Creditors (bankruptcy court hearing) in Sacramento California. Residents of San Joaquin, Stanislaus, and nearby California counties will attend their bankruptcy court hearing in Modesto California.