What is the difference between the dismissal of the debtor and the termination of a bankruptcy?

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. 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. 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. Closing means that all activity in the main bankruptcy case is completed. This means that all motions have already been ruled upon, and if a trustee was appointed, the trustee has filed a statement that all trustee duties have been completed. Closing does not mean that a discharge was entered unless all activities related to determining discharge have been completed. Pursuant to Section 362(c)(2) of the U.S. Bankruptcy Code, the automatic stay continues in effect until the earliest of— (A) the time the case is closed; (B) the time the case is dismissed; or (C) if the case is a case under chapter 7 concerning an individual or a case under chapter 9, 11, 12, or 13 of this title, the time a discharge is granted or denied. You are correct that if you as the debtor are not complying with bankruptcy requirements, a trustee or creditor can file a motion to dismiss or convert a bankruptcy case under Bankruptcy Code Sections 706, 707, 1112 or 1307, or the court can set an Order to Show Cause re Dismissal/Conversion. However, please note that dismissal has serious consequences. If a bankruptcy case is dismissed at the request of a trustee or creditor, or by the court on its own motion, the debtor may be prohibited from filing another bankruptcy case for 180 days [Bankruptcy Code Section 109(g)] or be required to file a motion to obtain permission to file another bankruptcy case (Bankruptcy Code Section 349).

Frank is right on the money but let me add two points that might be relevant to you. First, if you have assets which exceed your available exemptions, the trustee can proceed with your case and liquidate them for the benefit of your creditors. 2nd, with regard to secured property, if you did not file a statement of intention, with a proper intention expressed, the automatic stay will expire in regards to the relevant property, I believe but not sure, either 30 days after filing or 30 days after the 1st 341a meeting.

Also, be aware that it is a crime to be an "abusive filer" or to make a "fraudulent filing". Not only can you be barred from ever again filing bankruptcy, but if you repetitively file and do not comply with the BK rules, and appear to be using the automatic stay to frustrate or harm your creditors, the BK trustee can send the matter to the US Attorney for prosecution. Some attorneys sell unbundled legal services where you pay for just what you need and can afford. For example, some attorneys will give you an hour or two at a set price to review your issue and give you advice based on the law, prepare letters for you to sign, or sell the paperwork for the court filings; then you can proceed on your own, but knowing that your paperwork is correct and having a road map as to how to proceed. Neighborhood Law Office is a law firm offering unbundled legal services. jim [email protected] NOTICE— The Legal Information contained in this answer is provided solely for informational purposes to assist the layperson in understanding general legal concepts and terms, it is not legal advice nor does it create an attorney-client relationship between you and me or my law firm. Such Legal Information is intended for general informational purposes only and should be used only as a starting point for addressing your legal issues. It is not a substitute for an in-person or telephone consultation with an attorney licensed to practice in your jurisdiction about your specific legal issue. Becasue the format is limited, all facts necessary for complete advice are not available, therefore the information provided is merely a starting point. You understand that questions and answers or other postings to the Site are not confidential and are not subject to attorney-client privilege.