11 U.S.C. § 305 | Abstention

(a)

The court, after notice and a hearing, may dismiss a case under this title, or may suspend all proceedings in a case under this title, at any time if—

(1)

the interests of creditors and the debtor would be better served by such dismissal or suspension; or

(2)

(A)

a petition under section 1515 for recognition of a foreign proceeding has been granted; and

(B)

the purposes of chapter 15 of this title would be best served by such dismissal or suspension.

(b)

A foreign representative may seek dismissal or suspension under subsection (a)(2) of this section.

(c)

section 1254 of title 28 An order under subsection (a) of this section dismissing a case or suspending all proceedings in a case, or a decision not so to dismiss or suspend, is not reviewable by appeal or otherwise by the court of appeals under section 158(d), 1291, or 1292 of title 28 or by the Supreme Court of the United States under .

Pub. L. 95–598Nov. 6, 197892 Stat. 2561 Pub. L. 101–650, title III, § 309(a)Dec. 1, 1990104 Stat. 5113 Pub. L. 102–198, § 5Dec. 9, 1991105 Stat. 1623 Pub. L. 109–8, title VIII, § 802(d)(6)Apr. 20, 2005119 Stat. 146(, , ; , , ; , , ; , , .)

Historical and Revision Notes

senate report no. 95–989

28 U.S.C. 1471(c)11 U.S.C. 304(c)A principle of the common law requires a court with jurisdiction over a particular matter to take jurisdiction. This section recognizes that there are cases in which it would be appropriate for the court to decline jurisdiction. Abstention under this section, however, is of jurisdiction over the entire case. Abstention from jurisdiction over a particular proceeding in a case is governed by proposed . Thus, the court is permitted, if the interests of creditors and the debtor would be better served by dismissal of the case or suspension of all proceedings in the case, to so order. The court may dismiss or suspend under the first paragraph, for example, if an arrangement is being worked out by creditors and the debtor out of court, there is no prejudice to the results of creditors in that arrangement, and an involuntary case has been commenced by a few recalcitrant creditors to provide a basis for future threats to extract full payment. The less expensive out-of-court workout may better serve the interests in the case. Likewise, if there is pending a foreign proceeding concerning the debtor and the factors specified in proposed warrant dismissal or suspension, the court may so act.

Subsection (b) gives a foreign representative authority to appear in the bankruptcy court to request dismissal or suspension. Subsection (c) makes the dismissal or suspension order nonreviewable by appeal or otherwise. The bankruptcy court, based on its experience and discretion is vested with the power of decision.

Editorial Notes

Amendments

Pub. L. 109–82005—Subsec. (a)(2). added par. (2) and struck out former par. (2) which read as follows:

“(2)(A) there is pending a foreign proceeding; and

section 304(c) of this title“(B) the factors specified in warrant such dismissal or suspension.”

Pub. L. 102–1981991—Subsec. (c). substituted “title 28” for “this title” in two places.

Pub. L. 101–650 section 1254 of this title1990—Subsec. (c). inserted before period at end “by the court of appeals under section 158(d), 1291, or 1292 of this title or by the Supreme Court of the United States under ”.

Statutory Notes and Related Subsidiaries

Effective Date of 2005 Amendment

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