Discharge is the release of a debtor from the payment of debts in a bankruptcy process; sometimes called “release” from a debt. A debt is discharged or canceled by a court during a bankruptcy proceedings in order to relieve the debtor of the requirement to pay off the debt. Discharge only applies to debts incurred before the bankruptcy proceedings begin.
A dismissal is the termination of the case without either the entry of a discharge or a denial of discharge. After a case is dismissed, the debtor and the creditors have the same rights as they had before the bankruptcy case was commenced. Dismissal is the penalty for many minor infractions of bankruptcy procedures.
Mortgage paperwork mess: Next housing shock?
(CBS News) If there was a question about whether we’re headed for a second housing shock, that was settled last week with news that home prices have fallen a sixth consecutive month. Values are nearly back to levels of the Great Recession. One thing weighing on the economy is the huge number of foreclosed houses.