Bankruptcy Dismissed vs. Discharged

These two words sound similar but describe opposite outcomes. One means your debts are gone. The other means your case failed.

Side-by-side comparison

Discharged

  • Debts are legally eliminated
  • Creditors cannot collect
  • Fresh start achieved
  • Case completed successfully
  • Stays on credit report (Ch. 7: 10 years, Ch. 13: 7 years)

Dismissed

  • All debts remain in full
  • Creditors resume collection
  • No debt relief received
  • Case ended before completion
  • Filing still appears on credit report
  • Attorney and filing fees are not refunded

What "discharged" means

A bankruptcy discharge is a court order that releases you from personal liability on certain debts. After discharge, creditors can no longer legally pursue you for those obligations. The discharge is the goal of every bankruptcy case -- it is the "fresh start" that bankruptcy is designed to provide.

In a Chapter 7 case, discharge typically occurs about 60-90 days after the meeting of creditors. In a Chapter 13 case, discharge occurs after the debtor completes the 3-to-5-year repayment plan.

Statutory authority

Chapter 7 discharge: 11 U.S.C. Section 727. Chapter 13 discharge: 11 U.S.C. Section 1328. The discharge injunction that prevents creditor collection is found at 11 U.S.C. Section 524.

What "dismissed" means

A bankruptcy dismissal means the court terminated your case before it reached completion. You receive no debt relief. All your debts return to their pre-filing status, and creditors are free to resume collection efforts including lawsuits, wage garnishment, and phone calls.

Common reasons for dismissal

Why dismissal rates matter

Nationally, about one-third of Chapter 13 cases end in dismissal rather than discharge. But the rate varies dramatically by attorney. Some attorneys consistently achieve discharge rates above 80%. Others have dismissal rates above 60%.

What high dismissal rates can indicate

An abnormally high dismissal rate may signal inadequate case preparation, unrealistic plan proposals, poor communication with clients, failure to file documents on time, or a business model that profits from filing fees regardless of client outcome. When an attorney's clients are dismissed at twice the national rate, that is a pattern worth investigating.

Dismissal rates are calculable from public PACER data. Every case filing, every dismissal order, and every discharge order is a matter of public record. The data exists to evaluate any bankruptcy attorney's track record -- the question is whether anyone is checking.

The compounding problem

Dismissal creates a cycle. A dismissed debtor still needs debt relief, so they often refile. If they refile with the same attorney who failed the first time, the odds of a second dismissal are high. Each dismissed case costs filing fees ($338 for Chapter 13) and attorney fees (often $3,000-$4,000). After two or three dismissed cases, the debtor has spent thousands of dollars with nothing to show for it -- and their filing history now counts against them under Section 362(c)(3), which limits the automatic stay for repeat filers.

Dismissed cases and refiling restrictions

If your case is dismissed, you can generally refile. But there are restrictions:

Situation Restriction Statute
Dismissed for failure to obey court orders 180-day filing bar 109(g)(1)
Voluntary dismissal after stay relief motion 180-day filing bar 109(g)(2)
One prior dismissal within 1 year Automatic stay limited to 30 days 362(c)(3)
Two+ prior dismissals within 1 year No automatic stay at all 362(c)(4)

How to check an attorney's dismissal rate

All bankruptcy case outcomes are public record. You can look up any attorney's cases through PACER (Public Access to Court Electronic Records) and calculate their discharge rate versus dismissal rate. The data covers every bankruptcy case filed in every federal district.

See national dismissal and discharge data by district and attorney.

View the National Dashboard

Related resources

Legal references

Related guides:

Can I File Again? How Long Between? Super Discharge Dismissed vs Discharged Compare All Bars Glossary

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