Sierra Madre Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 3 - CASE ADMINISTRATION
    SUBCHAPTER I - COMMENCEMENT OF A CASE

-HEAD-
    Sec. 305. Abstention

-STATUTE-
      (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) 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 section 1254
    of title 28.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2561; Pub. L. 101-650,
    title III, Sec. 309(a), Dec. 1, 1990, 104 Stat. 5113; Pub. L. 102-
    198, Sec. 5, Dec. 9, 1991, 105 Stat. 1623; Pub. L. 109-8, title
    VIII, Sec. 802(d)(6), Apr. 20, 2005, 119 Stat. 146.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      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 28 U.S.C. 1471(c). 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 11 U.S.C. 304(c) 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.

                                AMENDMENTS                            
      2005 - Subsec. (a)(2). Pub. L. 109-8 added par. (2) and struck
    out former par. (2) which read as follows:
      "(2)(A) there is pending a foreign proceeding; and
      "(B) the factors specified in section 304(c) of this title
    warrant such dismissal or suspension."
      1991 - Subsec. (c). Pub. L. 102-198 substituted "title 28" for
    "this title" in two places.
      1990 - Subsec. (c). Pub. L. 101-650 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
    section 1254 of this title".

                     EFFECTIVE 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.

-End-