What is the Difference Between Dismissal, Conversion & Closing of a Bankruptcy Case?
Dismissal vs. Closing of a Bankruptcy Case — The main differences between dismissal and closing of a bankruptcy case involve discharge, ability to file another bankruptcy case, and the consequences of filing another bankruptcy case. (1) Dismissal of a Bankruptcy Case – Dismissal ordinarily means that the court stopped all proceedings in the main bankruptcy case AND in all adversary proceedings, and a discharge order was not entered. Dismissal can occur because a debtor requested the dismissal and qualifies for voluntary dismissal. For information on requests by a debtor to voluntarily dismiss its bankruptcy case, see FAQ After Filing #37. Dismissal can also occur without a debtor’s consent if the court orders dismissal on its own, or a trustee or a creditor files a motion to dismiss the bankruptcy case and the court grants the motion. For information on dismissal without the debtor’s consent, see FAQ After Filing #38. (2) Closing of a Bankruptcy Case – Closing means that all activity
