Hi - my name is XXXXX XXXXX X'X a Bankruptcy litigation attorney here to assist you.
Being dismissed means that your bankruptcy is thrown out and you are not entitled to any protection under the Bankruptcy Code and all creditors can come after you as if the bankruptcy never happened. You would, however, receive credit for any money you paid to the creditors through the plan that reduced the debts. It is likely that you haven't paid trustee's fees, which is generally 10% of all money that passes through the estate. If you don't pay the trustee his/her due, it can be grounds for dismissal.
Being discharged means that you have completed the bankruptcy plan, paid all fees, obligations, etc. In that case, your case is over and you're protected from the creditors who have been paid off through the bankruptcy.
Obviously, there's a huge difference in being dismissed as opposed to being discharged.
If you were to convert to a chapter 7, which is a complete liquidation, you'd likely lose all of the property that you've been paying on and trying to save for the past 5 years - other than things you can generally reaffirm like your house and vehicle.
You're better off to try and work something out to pay the trustee his fees and complete the bankruptcy.
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