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Bankruptcy – effects of dismissed versus discharged?

In 2002 I declared bankruptcy (Chapter 7). After several months it was discharged with assets. The asset referred to was my house, where the Trustee claimed it was worth more than I had stated. This discussion went on for about a year, after which I filed for dismissal. the Trustee granted this, provided I paid her and her entourage of advisors a considerable amount of money (her ‘fees’). My understanding was that I was now back at square one, with all previous debts reinstated. However, oddly, not a single creditor out of some 30-35 came back at me – not even the IRS to whom I owed a significant amount that had been included in the bankruptcy. Furthermore, my credit report only shows ‘discharged’ not ‘dismissed’. Can anyone explain this , and in particular how I can find out if the IRS did wipe off my debt ?

If a debt is discharged, the creditors may not ever attempt to collect the debt.

A dismissal means the case was dismissed, and it is like the bankruptcy never happened, so all of your creditors can still collect and attempt collection. They might not be aware that your case was dismissed and think they cannot collect or sue you.

Contact the IRS about taxes. Good luck with that. Taxes may not be discharged in a bankruptcy. You have your work cut out there.

There is no such thing as “dismissed” on a credit report, the creditors probably reported them all as discharged.

You should really be discussing this with your bankruptcy attorney. He or she knows this a lot better.

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