Discharged -- Successful Outcome
A discharge eliminates your personal liability for covered debts. It is the goal of filing bankruptcy.
Consequences for refiling:
- Discharge bars apply -- You must wait the required period before receiving another discharge
- No stay limits -- The automatic stay is not limited by a prior discharge (only by prior dismissals)
- Can file anytime -- You can file a new case at any time for the automatic stay, but cannot receive a discharge until the bar period expires
Dismissed -- Case Terminated, Debts Remain
A dismissal ends the case without eliminating debts. All obligations remain fully enforceable.
Consequences for refiling:
- No discharge bar -- Since no discharge was received, discharge bars do not apply
- 109(g) may apply -- If dismissed for willful failure to obey court orders or after a stay relief motion
- Stay limits apply -- 362(c)(3): stay limited to 30 days if one dismissal within past year. 362(c)(4): no stay at all if two+ dismissals within past year
The stay limits are the biggest risk. A dismissed case does not create a discharge bar, but it can severely limit or eliminate the automatic stay in your next filing.
Common Reasons for Dismissal
- Failure to file required documents within 14 days
- Failure to complete credit counseling before filing
- Failure to make Chapter 13 plan payments
- Failure to appear at the 341 meeting
- Failure to pass the means test (Chapter 7)
- Voluntary dismissal by the debtor
Strategic Considerations
If you are deciding whether to request dismissal or let your case continue:
- Dismissal preserves discharge eligibility in a future case (no bar is triggered)
- But dismissal creates stay risks for future filings within one year
- Conversion may be better -- converting from Chapter 13 to Chapter 7 (or vice versa) keeps the case open and avoids the stay limits
See also: Strategic refiling | All waiting periods
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