The key difference between a Bankruptcy Discharged vs Dismissed in Georgia lies in the outcome. A discharge releases the debtor from personal liability for certain debts, meaning they are no longer required to pay those debts, and creditors cannot pursue collection actions. This is the desired outcome for those filing bankruptcy, as it provides a fresh financial start.

On the other hand, a dismissal means the court has closed the case without providing debt relief. In a dismissal, the debtor remains responsible for their debts, and creditors can resume collection activities. A case may be dismissed due to procedural errors, missed payments in Chapter 13, or ineligibility in Chapter 7.

Because the process is complex, it’s wise to retain a Georgia bankruptcy lawyer who will handle the details, including strategies on dismissal or discharge. However, whether you’re filing for Chapter 7 or Chapter 13, knowing the outcome of your case can help you better prepare for life after bankruptcy.

 

What is a Bankruptcy Discharge?

A bankruptcy discharge occurs when the court officially wipes out your personal liability for certain debts owed to unsecured creditors. This is the ideal outcome for most people filing for bankruptcy in Georgia, as it means that you are no longer legally required to pay the debts that have been discharged. Once a debt is discharged, creditors are barred from taking any collection actions against you, such as calling, sending bills, or suing you.

In Georgia, a bankruptcy discharge is most commonly granted under Chapter 7 and Chapter 13 bankruptcy cases. This provides debt relief to those who are overwhelmed by financial burdens and allows for a fresh start. Your specific type of bankruptcy filing will determine how and when your discharge occurs.

 

 

Common Requirements for a Bankruptcy Discharge

To receive a bankruptcy discharge in Georgia, there are several important requirements you must meet under the US Bankruptcy Code. First, you must complete the bankruptcy process and adhere to the rules of the court and bankruptcy trustee. For a Chapter 7 bankruptcy, the court generally issues the discharge about four months after the case is filed, assuming there are no complications or objections from creditors. In Chapter 13 bankruptcy, the discharge comes only after the debtor completes their payment plan, which typically lasts three to five years.

Additionally, under Georgia bankruptcy law, filers must attend credit counseling and a debtor education course. These are mandatory steps so that individuals realize the financial decisions leading up to their bankruptcy and how to avoid similar situations in the future.

 

What is a Bankruptcy Dismissal?

Contrary to discharge, bankruptcy dismissal means the court has rejected the case. As a result, you do not receive the benefits of bankruptcy, such as debt relief or creditor protection. Instead, you are still legally obligated to pay your debts, and creditors can resume collection actions against you.

Dismissals can happen in both Chapter 7 and Chapter 13 cases and are often the result of procedural issues, failure to provide necessary documents, or missing payments under a Chapter 13 plan. It’s important to note that a dismissal does not provide the debt relief a discharge offers, so avoiding dismissal is crucial.

 

Chapter 7 Voluntary Dismissal

In Georgia, a voluntary dismissal of a Chapter 7 bankruptcy case occurs when the debtor themselves requests that the court dismiss their case. While the debtor can ask for a dismissal, the court must approve it. Chapter 7 voluntary dismissals are typically requested if a debtor realizes that they are not eligible for Chapter 7 bankruptcy or if they are able to negotiate a better repayment option outside of court.

It’s worth noting that filing for Chapter 7 comes with certain risks, especially if you have assets that could be liquidated to pay off creditors. By voluntarily dismissing the case, debtors can protect those assets and explore other options, such as Chapter 13 or alternative repayment plans.

 

Why do Chapter 13 Bankruptcy Cases Often Get Dismissed?

Chapter 13 bankruptcies involve repayment plans that allow debtors to catch up on past-due debts over a period of three to five years. However, not all Chapter 13 cases reach completion. One of the primary reasons a Chapter 13 case is dismissed in Georgia is because the debtor fails to make the required monthly payments under the repayment plan.

In Georgia, a Chapter 13 bankruptcy case may also be dismissed if the debtor fails to file required documents, such as tax returns, or if they incur new debts during the repayment period that they cannot manage. Another common reason for dismissal is if the debtor does not complete the required credit counseling or debtor education courses.

To avoid dismissal, it is crucial to stay on top of your payment plan and meet all legal obligations. A dismissal leaves you without protection from creditors, meaning they can resume collections or initiate legal action.

 

 

Voluntary Bankruptcy Dismissal for Chapter 13

A voluntary bankruptcy dismissal occurs when the debtor chooses to end their bankruptcy case. While filing for bankruptcy may seem like a permanent decision, there are situations where a debtor may change their mind or find alternative ways to resolve their financial issues. In Georgia, a voluntary dismissal can be requested by filing a motion with the court. However, it’s important to note that not all requests for dismissal are granted automatically.

In Chapter 13 cases, voluntary dismissal is more common since it allows the debtor to exit their repayment plan if they find another solution to their financial situation. Plus, a Chapter 13 case will remain on your credit report for a short time compared to Chapter 7.

 

Dismissals in Chapter 13 vs. Chapter 7

The reasons for dismissal can vary significantly between Chapter 7 and Chapter 13 bankruptcy cases. In a Chapter 7 case, dismissal typically occurs when the debtor is found ineligible for Chapter 7, such as having too much disposable income or failing the means test. Other reasons include failure to submit required documentation or fraud. If your case is dismissed in Chapter 7, you may need to explore other bankruptcy options or negotiate directly with creditors.

In Chapter 13 bankruptcy, dismissals are more often the result of missed payments on the repayment plan. If you fall behind on your payments or fail to meet the conditions set by the court, the trustee overseeing your case may request that the case be dismissed. Additionally, failure to file important documents such as tax returns or failure to complete mandatory courses can result in a dismissal.

 

Dismissal Without Prejudice in Georgia Bankruptcy Cases

A dismissal without prejudice allows a debtor to refile for bankruptcy if their case is dismissed. This type of dismissal means that there were no major legal infractions in the case, but something prevented the case from moving forward. Common reasons for dismissal without prejudice include failure to complete mandatory filings or missing a court date.

In Georgia, a dismissal without prejudice gives the debtor the opportunity to correct the mistakes that led to the dismissal and refile the case. However, keep in mind that repeated dismissals or delays may lead the court to impose additional restrictions on your ability to refile, such as waiting periods or reduced protections under the automatic stay.

 

 

Refiling Chapter 13 in Bankruptcy Court

After a case is dismissed, a debtor in Georgia may choose to refile Chapter 13 bankruptcy by preparing the necessary paperwork and paying the court filing fee. Refiling may be necessary if the original case was dismissed due to missed payments, incomplete paperwork, or other issues. When you refile for Chapter 13, you will need to submit a new repayment plan and resolve all previous issues to avoid another dismissal.

It is important to point out that refiling too soon after a dismissal may limit the automatic stay, which protects you from creditor actions during the bankruptcy process. If your case was dismissed within the previous year, the automatic stay may only last 30 days unless you request an extension. Refiling also allows you to renegotiate the terms of your repayment plan, potentially making it more manageable.

 

Contact Our Team to Discuss Your Bankruptcy Case

In Georgia, the difference between a bankruptcy discharged vs dismissed can have a profound impact on your financial future. A discharge offers relief by eliminating personal liability for many debts, while a dismissal can leave you facing the same financial difficulties as before you filed. If you are considering bankruptcy, it’s important to work with a qualified bankruptcy lawyer who can guide you through the process and help you achieve the best possible outcome.

Take control of your financial future today. At Morgan & Morgan, our experienced bankruptcy attorneys in Georgia are here to help you review your options and guide you through the process. Whether you’re facing a dismissal or seeking a discharge, we’ll work with you to find the best solution for your situation. Call 706-548-7070 for a free no-obligation consultation to get started on the path to debt relief.

 

Answers to FAQs About Bankruptcy Discharged vs Dismissed in GA

How long does it take to get a bankruptcy discharge in Georgia?

For Chapter 7 cases, the discharge usually occurs about four months after filing. In Chapter 13 cases, the discharge happens after the debtor completes their repayment plan, typically lasting three to five years.

Can I refile for bankruptcy if my case is dismissed in Georgia?

Yes, you can refile for bankruptcy if your case is dismissed by submitting the proper documents and paying any court filing fees. However, you may face certain restrictions depending on the reasons for the dismissal and the type of bankruptcy. It’s essential to consult with a bankruptcy attorney in Georgia to understand your options.

Will I lose my assets if my bankruptcy is dismissed in Georgia?

If your bankruptcy is dismissed, you lose the protection from creditors provided by the automatic stay, which could lead to asset seizure or foreclosure. Working with a lawyer to avoid dismissal is crucial to protect your assets.

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