§ 349. Effect of dismissal

Statutory text

Unless the court, for cause, orders otherwise, the dismissal of a case under this title does not bar the discharge, in a later case under this title, of debts that were dischargeable in the case dismissed; nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as provided in section 109(g) of this title.

Unless the court, for cause, orders otherwise, a dismissal of a case other than under section 742 of this title—

reinstates—

any proceeding or custodianship superseded under section 543 of this title;

any transfer avoided under section 522, 544, 545, 547, 548, 549, or 724(a) of this title, or preserved under section 510(c)(2), 522(i)(2), or 551 of this title; and

any lien voided under section 506(d) of this title;

vacates any order, judgment, or transfer ordered, under section 522(i)(1), 542, 550, or 553 of this title; and

revests the property of the estate in the entity in which such property was vested immediately before the commencement of the case under this title.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1978
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 349
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2569
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2569
1984
Pub. L. 98–353 title III § 303 · 98 Stat. 333
Inserted · 11 U.S.C. § 349(a)
Pub. L. 98–353 inserted “; nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as provided in section 109(f) of this title”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 98–353 inserted “; nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as provided in section 109(f) of this title”.
Enacted provision · exact public law section
Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”.
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 title V § 501(d)(6) · 108 Stat. 4106
Substituted · 11 U.S.C. § 349(a)
Pub. L. 103–394 substituted “109(g)” for “109(f)”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 103–394 substituted “109(g)” for “109(f)”.
Enacted provision · exact public law section
(6) in section 349(a) by striking “109(f)” and inserting “109(g)”,
Effective date note
Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.

2 of 3 references resolved to an enrolled provision · 1 partial

Notes

Historical and Revision Notes

legislative statements

Section 349(b)(2) of the House amendment adds a cross reference to section 553 to reflect the new right of recovery of setoffs created under that section. Corresponding changes are made throughout the House amendment.

senate report no. 95–989

Subsection (a) specifies that unless the court for cause orders otherwise, the dismissal of a case is without prejudice. The debtor is not barred from receiving a discharge in a later case of debts that were dischargeable in the case dismissed. Of course, this subsection refers only to pre-discharge dismissals. If the debtor has already received a discharge and it is not revoked, then the debtor would be barred under section 727(a) from receiving a discharge in a subsequent liquidation case for six years. Dismissal of an involuntary on the merits will generally not give rise to adequate cause so as to bar the debtor from further relief.

Subsection (b) specifies that the dismissal reinstates proceedings or custodianships that were superseded by the bankruptcy case, reinstates avoided transfers, reinstates voided liens, vacates any order, judgment, or transfer ordered as a result of the avoidance of a transfer, and revests the property of the estate in the entity in which the property was vested at the commencement of the case. The court is permitted to order a different result for cause. The basic purpose of the subsection is to undo the bankruptcy case, as far as practicable, and to restore all property rights to the position in which they were found at the commencement of the case. This does not necessarily encompass undoing sales of property from the estate to a good faith purchaser. Where there is a question over the scope of the subsection, the court will make the appropriate orders to protect rights acquired in reliance on the bankruptcy case.

Editorial Notes

Amendments1984–1994 · 2 rounds

1994

Subsec. (a). Pub. L. 103–394 substituted “109(g)” for “109(f)”.

1984

Subsec. (a). Pub. L. 98–353 inserted “; nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as provided in section 109(f) of this title”.

Statutory Notes and Related Subsidiaries

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.

Credits

1978–1994 · 3 acts

1978Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2569
1984Pub. L. 98–353, title III, § 303, July 10, 1984, 98 Stat. 352
1994Pub. L. 103–394, title V, § 501(d)(6), Oct. 22, 1994, 108 Stat. 4144.

Show as published

(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2569; Pub. L. 98–353, title III, § 303, July 10, 1984, 98 Stat. 352; Pub. L. 103–394, title V, § 501(d)(6), Oct. 22, 1994, 108 Stat. 4144.)