United States Code

11 U.S.C. § 349 — Effect of dismissal

Section 349 sets out what happens when a bankruptcy case is dismissed. Under subsection (a), the dismissal does not bar discharging those debts in a later case and does not prejudice filing again, except as section 109(g) provides. Subsection (b) generally undoes the case: transfers avoided during the case are reinstated, liens voided under section 506(d) return, certain orders are vacated, and estate property revests where it was vested immediately before filing. A court may order otherwise for cause.

A dismissal is not the same thing as a discharge, and section 349 is where the Code says what a dismissal actually does. It answers two questions people ask in a panic: what happens to everything the case had already changed, and whether the dismissal follows you into a future filing. Both answers are defaults that a court can change for cause, so the text below matters twice — once for the rule, once for the exception.

What does section 349 say a dismissal does?

Section 349 does not say why a case gets dismissed. It describes the consequences, and it splits them into two defaults. Subsection (a) looks forward: the dismissal does not bar the discharge, in a later case, of debts that were dischargeable in the case dismissed, and it does not prejudice the debtor with regard to filing a subsequent petition, except as provided in section 109(g). Subsection (b) looks backward: for a dismissal of a case other than under section 742, it reinstates things the case had undone, vacates certain orders, and revests estate property. Both subsections begin with the same qualifier — "Unless the court, for cause, orders otherwise" — so the court can direct a different result in a particular case. If a dismissal is in front of you, the practical question is which subsection touches your situation: subsection (a) if you are thinking about filing again, subsection (b) if you are worried about your property and about transfers or liens the case had already undone.

Can I file bankruptcy again after my case is dismissed?

Subsection (a) addresses this directly. It provides that a dismissal does not prejudice the debtor with regard to filing a subsequent petition under this title, except as provided in section 109(g). It also provides that the dismissal does not bar the discharge, in a later case, of debts that were dischargeable in the case that was dismissed — so the debts do not become permanently non-dischargeable just because the first case ended in dismissal. Two limits sit right in the sentence. The first is the cross-reference: section 109(g), which section 349 does not reproduce, is where the restrictions on filing again after certain dismissals live, and it is a separate section to read. The second is the opening clause. Because subsection (a) applies "Unless the court, for cause, orders otherwise," a court can enter a dismissal order that departs from this default. What counts as cause is not defined in this section.

Do avoided transfers and voided liens come back after a dismissal?

Generally yes, under subsection (b)(1), which reinstates several categories at once. Paragraph (b)(1)(A) reinstates any proceeding or custodianship superseded under section 543. Paragraph (b)(1)(B) reinstates any transfer avoided under sections 522, 544, 545, 547, 548, 549, or 724(a), or preserved under sections 510(c)(2), 522(i)(2), or 551. Paragraph (b)(1)(C) reinstates any lien voided under section 506(d). The pattern is that gains produced by the case do not automatically survive the case. A payment clawed back as a preference, a lien stripped as unsecured, a state-court receivership handed over to a trustee — subsection (b) puts those back as the default. Two boundaries appear in the text: subsection (b) applies to a dismissal of a case other than under section 742, and, like subsection (a), it applies only unless the court, for cause, orders otherwise. The list is specific, so which sections your case actually used is the thing to check in the text below.

What happens to my property when a bankruptcy case is dismissed?

Subsection (b)(3) is the revesting rule. On dismissal, property of the estate revests in the entity in which such property was vested immediately before the case commenced. The reference point is the moment before filing, not some later stage of the case, and "entity" is used rather than "debtor" — property that belonged to someone else immediately before the case goes back there. Subsection (b)(2) handles the paperwork side: it vacates any order, judgment, or transfer ordered under sections 522(i)(1), 542, 550, or 553. Those are the sections behind turnover of property, recovery of an avoided transfer, and setoff, so orders entered on those grounds are undone as the default. Both paragraphs sit under the same two conditions as the rest of subsection (b): the case must be one other than under section 742, and the court may, for cause, order otherwise.

Can a bankruptcy court change what a dismissal does?

The text builds that possibility into both halves of the section. Subsection (a) and subsection (b) each begin "Unless the court, for cause, orders otherwise." That phrasing makes everything described here a starting point rather than a fixed outcome: the reinstatement, the vacating of orders, the revesting of property, and the forward-looking rules about later filings and later discharge all apply unless the dismissal order says something different. Section 349 does not define cause and does not list what a court may weigh, so the standard is not answered by this text. It also does not say who asks or when. What the section does establish is where to look: the dismissal order itself. Two dismissals of otherwise similar cases can carry different consequences if one of the orders contains a for-cause direction, which is why the wording of the order — and section 109(g) for a future filing — is what an attorney or legal aid office would read alongside this section.

This summary is our plain-English explanation, written to help you find the right part of the text below. The section itself is the authority — where the two differ, the text controls.

Text of 11 U.S.C. § 349

Reproduced in full from the official source, verified as of July 2026. View it at the source.

(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

(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.)

Notes and amendment history

Published by the official source alongside the section above. These notes record how the text has changed over time and the reasoning behind those changes. They are not the operative rule — the enacted text is the section itself.

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

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".

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.

Guides that rely on 11 U.S.C. § 349

Plain-language explanations on this site that cite this section.

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Last reviewed July 26, 2026 · Sources verified July 26, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

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