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In Chapter 7 bankruptcy, the court usually closes the filers case with a final decree shortly after mailing the discharge order. In Chapter 13 bankruptcy, the court usually mails a discharge order and final decree after the filer completes the Chapter 13 repayment plan and submits the final paperwork.
Is a bankruptcy case closed or discharged?
A discharge and a dismissal in Chapter 7 bankruptcy lead to very different outcomes. A discharge means your debts are officially erased, and youre no longer legally obligated to pay them. On the other hand, a dismissal is when the court closes your case without forgiving your debts.
Does chapter 13 wipe out all debt?
Your bankruptcy case ends when the court closes it, not when you get a discharge.
What happens after a bankruptcy is discharged?
The key difference is simple: A discharge means you successfully completed the process and eligible debts are erased. A dismissal means your case was closed before you got debt relief, so you still owe your debts.
Does a bankruptcy discharge mean the case is closed?
One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a fresh start. The debtor has no liability for discharged debts. In a chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations.
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