Bankruptcy Code

Bankruptcy is a legal declaration that allows some debtors to discharge their unsecured debts. The text of this statute is provided as general information to the public. It may be amended, revised, or rescinded at any time without notice. This information is not intended to be legal advice. For more information, please see our disclaimer.

11 U.S.C. § 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 [11 USCS § 109(g)].

(b) Unless the court, for cause, orders otherwise, a dismissal of a case other than under section 742 of this title [11 USCS § 742]--
(1) reinstates--
(A) any proceeding or custodianship superseded under section 543 of this title [11 USCS § 543];
(B) any transfer avoided under section 522, 544, 545, 547, 548, 549, or 724(a) of this title [11 USCS § 522, 544, 545, 547, 548, 549, or 724(a)], or preserved under section 510(c)(2), 522(i)(2), or 551 of this title [11 USCS § 510(c)(2), 522(i)(2), or 551]; and
(C) any lien voided under section 506(d) of this title [11 USCS § 506(d)];
(2) vacates any order, judgment, or transfer ordered, under section 522(i)(1), 542, 550, or 553 of this title [11 USCS § 522(i)(1), 542, 550, or 553]; 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.