Your debts have become overwhelming and you are unable to keep up with your payments. You may have tried negotiating payment terms with your lender or tried to find relief through a debt settlement company. Many times, these actions can provide the financial help you are looking for to resolve your debt problems, but there are times when other debt management options must be pursued.

Bankruptcy can offer debt elimination options while protecting many of your assets. However, bankruptcy is a process that should be managed by a professional. Many times people get into bankruptcy without knowing much about the process or what the potential outcomes could be.

Bankruptcy Discharge

A discharge occurs when your case was approved by the courts and your debts were satisfied.  A discharge marks the end of your bankruptcy case through debt elimination or satisfaction. A Chapter 7 discharge results from the court ruling your debts are to be erased by the creditors. Obtaining a Chapter 7 discharge is not always easy, especially if the courts feel you are financially able to repay some or all of your debts. In this case, the court may require you to enter Chapter 13 bankruptcy; whereby you will develop a repayment plan to satisfy the debts to your creditors. After you successfully complete the debt repayment plan, your Chapter 13 case will be discharged. In either type of bankruptcy, the discharge order resolves you of liability over any debts and requires the creditor to reflect these changes on your account.

Bankruptcy Dismissal

A dismissal occurs when your case is closed and no debt resolution was ordered. In this case, you are still held liable for your debts and you are not afforded bankruptcy protection. A dismissal of a bankruptcy case can result from several factors. In a voluntary dismissal, you request for your case to be dismissed by the court.  People may request to have their case dismissed if they were working on alternative payment arrangements with lenders that refuse to help if under bankruptcy protection, or if they feel they may be able to repay their debt outside of bankruptcy. An involuntary dismissal occurs when the bankruptcy court closes your case because you failed to comply with requirements or they deem an action to be fraudulent.

Your case may be dismissed if you failed to file the necessary forms, had incomplete or inaccurate information on your forms, or filed fraudulent forms. Failure to complete the required debtor educational or credit counseling course before the deadline, or pay the filing fees may also result in a dismissal.

For more information visit: http://leebankruptcy.com.