11 U.S.C. § 349

Effect of dismissal

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(a) 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.(b) Unless the court, for cause, orders otherwise, a dismissal of a case other than under section 742 of this title(1) reinstates—(A) any proceeding or custodianship superseded under section 543 of this title;(B) any transfer avoided under section 522, 544, 545, 547, 548, 549, or 724(a) of this title, or preserved under section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(C) any lien voided under section 506(d) of this title;(2) vacates any order, judgment, or transfer ordered, under section 522(i)(1), 542, 550, or 553 of this title; and(3) 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.(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.)Historical and Revision Noteslegislative 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Subsection (b) specifies that the dismissal reinstates proceedings or custodianships that were superseded by the bankruptcy case, reinstates avoided transfers, reinstates voided liens, vacates any order, judgment, or transfer ordered as a result of the avoidance of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 NotesAmendments

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 SubsidiariesEffective 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.

Notes of Decisions
Cited in 803 cases (155 in the last 5 years), 1980–2026 · leading case: Ass'n Resources, Inc. v. Wall, 2 A.3d 873 (Conn. 2010).
Ass'n Resources, Inc. v. Wall, 2 A.3d 873 (Conn. 2010). · cites it 8× “21 The court concluded that 11 U.S.C. § 349 (b) (3), 22 “upon the dismissal of a [bankruptcy] case .”
Aheong v. Mellon Mortg. Co. (In Re Aheong), 276 B.R. 233 (9th Cir. BAP 2002). · cites it 8× “11 U.S.C. §§ 349 (b)(3) and 362(c)(1) and (2)(B).”
Crawford v. Franklin Credit Mgmt. Corp., 758 F.3d 473 (2d Cir. 2014). · cites it 3× “revests the property of the estate in the entity in which such property was vested immediately before the commencement of the case,” 11 U.S.C. § 349 (b)(3) (emphases added). Thus, if the debtor owned the property prior to the commencement of the bankruptcy case, a dismissal…”
In re Demery, 570 B.R. 220 (Bankr. W.D. La. 2017). · cites it 12× “The instant application was originally denied based on this Court’s plain reading interpretation of 11 U.S.C. § 349 . Specifically, this Court believed the debt- or’s undistributed wages, held by the Chapter 13 Trustee, revested in the debtor when his case was dismissed…”
In Re Lewis, 346 B.R. 89 (Bankr. E.D. Pa. 2006). · cites it 8× “4 In the Memorandum, the court explained that the denial of the Lewis Motion was based on 11 U.S.C. § 349 (b), which provides, in pertinent part: Unless the court, for cause, orders otherwise, a dismissal of a case other than under section 742 of this title— (3) revests the…”
Viegelahn v. Lopez (In Re Lopez), 897 F.3d 663 (5th Cir. 2018). · cites it 4× “" The Trustee also maintained that "cause" existed under 11 U.S.C. § 349 (b) to keep the homestead proceeds from returning to the Debtors.”
In Re Tri-Glied, Ltd., 179 B.R. 1014 (Bankr. E.D.N.Y. 1995). · cites it 16× “§ 365 (d)(4) motion to extend its time to assume or reject the Lease, the Debtor asserts that the Lease continues to exist because: (1) the deemed rejection of the Lease did not terminate the Lease, (2) the dismissal of the first Chapter 11 had the effect pursuant to 11 U.S.C. §…”
In re Darden, 474 B.R. 1 (Bankr. D. Mass. 2012). · cites it 7× “Furthermore, the Debtor argues that dismissal of her case, which the Court must grant as a matter of right, would, by operation of 11 U.S.C. § 349 (b)(3), automatically revest the Settlement proceeds in the Debtor.”
In Re: Robert E. Casse, Debtor Robert E. Casse, Debtor-Appellant v. Key Bank Nat'l Ass'n, Creditor-Appellee, 198 F.3d 327 (2d Cir. 1999). · cites it 4× “11 U.S.C. § 349 (a) provides: 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 ease under this…”
In re Hamilton, 493 B.R. 31 (Bankr. M.D. Tenn. 2013). · cites it 6× “The issue in these Chapter 13 cases is: What happens at dismissal to funds held by the trustee in a confirmed Chapter 13 case? 11 U.S.C. § 349 (b)(3) provides the answer: Absent court order otherwise, undistributed funds must be returned to the debtor at dismissal after…”
In Re Shirley Mae TOMLIN, Debtor. COLONIAL AUTO Ctr., Plaintiff-Appellee, v. Shirley Mae TOMLIN, Defendant-Appellant, 105 F.3d 933 (4th Cir. 1997). · cites it 4× “” 11 U.S.C. § 349 (a) (1994); 3 Collier on Bankruptcy § 349.”
In Re Mitchell, 357 B.R. 142 (Bankr. C.D. Cal. 2006). · cites it 5× “Furthermore, the Court concludes that filing one Chapter 7 petition in bad faith is sufficient “cause” under 11 U.S.C. § 349 to impose a 180-day bar against refiling another Chapter 7 petition.”
— 11 U.S.C. § 349(a) — 6 cases
In re: Rodney Thomas Riddle (6th Cir. BAP 2020).
In re: Moore (D. Conn. 2022).
Bunyan v. Remick (M.D. Fla. 2019).
Alijah M Reaves (Bankr. D.N.J. 2023).
Aljah Marcel Reaves, Jr. (Bankr. D.N.J. 2023).
— 11 U.S.C. § 349(b) — 2 cases
City Bank v. Indus. Bank NA, 178 F. App'x 409 (5th Cir. 2006).
— 11 U.S.C. § 349(b)(3) — 3 cases
Norris v. Brookshire Grocery Co., 362 S.W.3d 226 (Tex. App. 2012).
Terry Revell v. Morrison Supply Co., LLC, 501 S.W.3d 255 (Tex. App. 2016).
Dumas v. Sabre Grp. (In Re Dumas), 397 B.R. 883 (Bankr. N.D. Ill. 2008).
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.