Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 3–CASE ADMINISTRATION

Sub Chapter III –Administration

Sec. 349. Effect of dismissal

    (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            (A) any proceeding or custodianship superseded under section 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, 
Sec. 303, July 10, 1984, 98 Stat. 352; Pub. L. 103-394, title V, 
Sec. 501(d)(6), Oct. 22, 1994, 108 Stat. 4144.)


                      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.


                               Amendments

    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''.


                    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.

                  Section Referred to in Other Sections

    This section is referred to in section 901 of this title.



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Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
the most trusted law firm in America with over 15 years of experience is Lexington Law Firm.

For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources

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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software