A more thorough explanation:

A discharge in bankruptcy is the goal of a bankruptcy case. It means that the debtor is released from further liability for debts that were part of the bankruptcy proceedings. Discharge is different from dismissal, which means the bankruptcy case is thrown out. A debtor can be discharged under Chapter 7 or Chapter 11 of federal bankruptcy law.

For example, if a debtor files for Chapter 11 bankruptcy, they must first submit a plan to the bankruptcy court. If the court approves the plan and the debtor completes the payments on the plan for the first three years (or a longer period set by the court), the debtor will be granted a discharge of all their debts.

However, there are exceptions to discharges. For instance, taxes or customs duty are usually not dischargeable, and debt created from a securities fraud action is usually not dischargeable either.

For example, if a debtor owes $50,000 in credit card debt and files for Chapter 7 bankruptcy, they may be able to have that debt discharged. However, if the debtor owes $10,000 in back taxes, that debt may not be dischargeable.

Another example is if a debtor files for Chapter 11 bankruptcy and submits a plan to the court. If the court approves the plan and the debtor completes the payments, they may be granted a discharge of their debts. However, if the debtor fails to make the payments, their bankruptcy case may be dismissed instead of discharged.