U.S. Code » Title 11 » Chapter CHAPTER 5— CREDITORS, THE DEBTOR, AND THE ESTATE › Subchapter SUBCHAPTER III— THE ESTATE

11 U.S.C. § 549

Postpetition transactions

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(a) Except as provided in subsection (b) or (c) of this section, the trustee may avoid a transfer of property of the estate—(1) that occurs after the commencement of the case; and(2)(A) that is authorized only under section 303(f) or 542(c) of this title; or(B) that is not authorized under this title or by the court.(b) In an involuntary case, the trustee may not avoid under subsection (a) of this section a transfer made after the commencement of such case but before the order for relief to the extent any value, including services, but not including satisfaction or securing of a debt that arose before the commencement of the case, is given after the commencement of the case in exchange for such transfer, notwithstanding any notice or knowledge of the case that the transferee has.(c) The trustee may not avoid under subsection (a) of this section a transfer of an interest in real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of an interest in such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such real property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to such interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected.(d) An action or proceeding under this section may not be commenced after the earlier of—(1) two years after the date of the transfer sought to be avoided; or(2) the time the case is closed or dismissed.(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2601; Pub. L. 98–353, title III, § 464, July 10, 1984, 98 Stat. 379; Pub. L. 99–554, title II, § 283(o), Oct. 27, 1986, 100 Stat. 3117; Pub. L. 103–394, title V, § 501(d)(18), Oct. 22, 1994, 108 Stat. 4146; Pub. L. 109–8, title XII, § 1214, Apr. 20, 2005, 119 Stat. 195.)Historical and Revision Noteslegislative statements

Section 549 of the House amendment has been redrafted in order to incorporate sections 342(b) and (c) of the Senate amendment. Those sections have been consolidated and redrafted in section 549(c) of the House amendment. Section 549(d) of the House amendment adopts a provision contained in section 549(c) of the Senate amendment.

senate report no. 95–989

This section modifies section 70d of current law [section 110(d) of former title 11]. It permits the trustee to avoid transfers of property that occur after the commencement of the case. The transfer must either have been unauthorized, or authorized under a section that protects only the transferor. Subsection (b) protects “involuntary gap” transferees to the extent of any value (including services, but not including satisfaction of a debt that arose before the commencement of the case), given after commencement in exchange for the transfer. Notice or knowledge of the transferee is irrelevant in determining whether he is protected under this provision.

Editorial NotesAmendments

2005—Subsec. (c). Pub. L. 109–8 inserted “an interest in” after “transfer of” in two places and substituted “purchaser of such real property” for “purchaser of such property” and “such interest” for “the interest”.

1994—Subsec. (b). Pub. L. 103–394 inserted “the trustee may not avoid under subsection (a) of this section” after “involuntary case,”.

1986—Subsec. (b). Pub. L. 99–554 substituted “made” for “that occurs”, and “to the extent” for “is valid against the trustee to the extent of”, and inserted “is” before “given”.

1984—Subsec. (a). Pub. L. 98–353, § 464(a)(1), (2), substituted “(b) or (c)” for “(b) and (c)” in provisions preceding par. (1) and inserted “only” between “authorized” and “under” in par. (2)(A). In the original of Pub. L. 98–353, subsec. (a)(2) of section 464 thereof ended with a period but was followed by pars. (3), (4), and (5). Such pars. (3), (4), and (5) purported to amend subsec. (a) of this section in ways not susceptible of execution. In a predecessor bill [S. 445], these pars. (3), (4), and (5) formed a part of a subsec. (b) of section 361 thereof which amended subsec. (b) of this section. Such subsec. (b) of section 361 of S. 445 was not carried into Pub. L. 98–353, § 464.

Subsec. (c). Pub. L. 98–353, § 464(c), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The trustee may not avoid under subsection (a) of this section a transfer, to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value or to a purchaser at a judicial sale, of real property located other than in the county in which the case is commenced, unless a copy of the petition was filed in the office where conveyances of real property in such county are recorded before such transfer was so far perfected that a bona fide purchaser of such property against whom applicable law permits such transfer to be perfected cannot acquire an interest that is superior to the interest of such good faith or judicial sale purchaser. A good faith purchaser, without knowledge of the commencement of the case and for less than present fair equivalent value, of real property located other than in the county in which the case is commenced, under a transfer that the trustee may avoid under this section, has a lien on the property transferred to the extent of any present value given, unless a copy of the petition was so filed before such transfer was so perfected.”

Subsec. (d)(1). Pub. L. 98–353, § 464(d), substituted “or” for “and”.

Statutory Notes and Related SubsidiariesEffective Date of 2005 Amendment

Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.

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 1986 Amendment

Amendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.

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 1,259 cases (94 in the last 5 years), 1944–2026 · leading case: In Re Straightline Investments, Inc.
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In Re Straightline Investments, Inc. (2008) 9th Cir. · cites it 9× “Aalfs ("Aalfs") appeals a decision by the Ninth Circuit Bankruptcy Appellate Panel ("BAP") affirming the bankruptcy court's judgment under 11 U.S.C. § 549 (a) avoiding the transfer to Aalfs of Straightline Investments, Inc.”
Frederick Grede v. FCStone LLC (2014) 7th Cir. · cites it 11× “That authorization means that the post-petition transfer cannot be avoided under the express terms of 11 U.S.C. § 549 . Although we do not reach all of the parties’ arguments under § 549, in an effort to provide guidance to the district court for future related cases, we briefly…”
Slone v. Anderson (In re Anderson) (2013) Bankr. S.D. Ohio · cites it 18× “AS AN UNAUTHORIZED POST-PETITION TRANSFER PURSUANT TO 11 U.S.C. § 549 AND ORDERING RECOVERY OF TRANSFERRED PROPERTY FROM 1ST NATIONAL PURSUANT TO 11 U.”
Paloian v. Grupo Serla S.A. De C v. (In Re GGSI Liquidation Inc.) (2006) Bankr. N.D. Ill. · cites it 8× “ote to the Trustee, and an order requiring Bank One and Union Industrial to account for any proceeds or other benefits generated by the Grupo Serla Note and to pay at least 80% of such funds to the bankruptcy estate; (Count VI) a rescission of the December 15, 2000 Agreement;…”
In Re: Home America t.v.-appliance Audio, Inc., Debtor. United States of America v. Wenda K. Shaltry Maryland Investment (2000) 9th Cir. · cites it 12× “In claiming a tax refund on behalf of the debtors’ estate, the trustee sought to avoid, pursuant to 11 U.S.C. § 549 , the debtors’ consent to the filing of a consolidated tax return with their common parent corporation and the parent corporation’s election under 26 U.”
Fleet National Bank v. Gray (2004) 1st Cir. · cites it 4× “11 U.S.C. § 549 (d) (stating, “[a]n action or proceeding under this section may not be commenced after the earlier of — (1) two years after the date of the transfer sought to be avoided; or (2) the time the case is closed or dismissed.”
In Re: Oakwood Markets, Inc., Debtor. Maurice K. Guinn, Trustee, Appellant/cross-Appellee v. Oakwood Properties, Inc.,ap (2000) 6th Cir. · cites it 13× “Asserting- error by the bankruptcy court, the trustee claims that (1) the debt- or’s post-petition transfers pursuant to a pre-petition real estate lease were not excepted from avoidance under 11 U.S.C. § 549 (b); (2) the-“value” given in exchange for a transfer should be…”
Michalski v. State Bank & Trust (In Re Taco Ed's, Inc.) (1986) Bankr. N.D. Ohio · cites it 9× “Initially, the third Count asserts an action to avoid the post-petition transfer of the Toledo Trust Securities under the provisions of 11 U.S.C. § 549 . Secondly, it seeks a turnover of the Toledo Trust Securities under the provisions of 11 U.”
Fjeldsted v. Lien (In Re Fjeldsted) (2003) 9th Cir. BAP · cites it 3× “” 11 U.S.C. § 549 (c). 4 However, the court found there was a factual dispute concerning whether Lien had knowledge of Debtor’s bankruptcy filing prior to his purchase of the property.”
Murphy v. Felice (In re Felice) (2012) Bankr. D. Mass. · cites it 8× “Under either scenario, the Second Amendment to the Family Trust has resulted in the transfer of an interest belonging to Ernest on the petition date, which, if property of the estate, the Trustee may seek to avoid pursuant to 11 U.S.C. § 549 . 1. Authority of the Bankruptcy…”
Krol v. Wilcek (In Re H. King & Associates) (2003) Bankr. N.D. Ill. · cites it 5× “44 violated 11 U.S.C. § 549 (a). Pursuant to 11 U.S.C.”
Peterson v. Berg (In Re Berg) (2008) Bankr. N.D. Ill. · cites it 7× “In Count II, Plaintiff seeks to avoid, as a post-bankruptcy transfer pursuant to 11 U.S.C. § 549 , a mortgage purportedly held by eHome Credit Corp.”
Show all 1,259 citing cases →
— 11 U.S.C. § 549(a) — 5 cases
In Re: Oakwood Markets, Inc., Debtor. Maurice K. Guinn, Trustee, Appellant/cross-Appellee v. Oakwood Properties, Inc.,ap (2000) 6th Cir. “Asserting- error by the bankruptcy court, the trustee claims that (1) the debt- or’s post-petition transfers pursuant to a pre-petition real estate lease were not excepted from avoidance under 11 U.S.C. § 549 (b); (2) the-“value” given in exchange for a transfer should be…”
Garrett Road Supermarket, Inc. v. Wetterau Finance Co. (1989) E.D. Pa.
Gonzales v. SZTX Investments, LLC (2023) Bankr. N.D. Tex.
O'Neill v. National Cup Co. (In re Cáceres Johnson P.R., Inc.) (1988) D.P.R.
Guinn v. Oakwood Properties (2000) 6th Cir.
— 11 U.S.C. § 549(a)(1) — 1 case
In Re Webb (2010) Bankr. N.D. Miss.
— 11 U.S.C. § 549(a)(2)(A) — 1 case
Rosen v. Dahan (In Re Minh Vu Hoang) (2012) D. Md.
— 11 U.S.C. § 549(c) — 1 case
Marietta Cheeks (2019) Bankr. E.D. Va.
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