Discharged - A bankruptcy discharge is the desired result of a bankruptcy case. It means there’s a court order in the individual’s bankruptcy case that removes their debts. The individual no longer has to pay their creditors once the court has discharged their debts. Bankruptcy discharge occurs in both Chapter 7 and Chapter 13 bankruptcy.
Dismissal - A bankruptcy dismissal closes the individual’s bankruptcy case, and if it occurs before they receive a discharge, it will mean that: they have lost the protection of the automatic stay (the order that prohibits creditors from collecting debts), and they will continue to be liable for their debts.