Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 3–CASE ADMINISTRATION

Sub Chapter –Commencement of a Case

Sec. 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) there is pending a foreign proceeding; and
        (B) the factors specified in section 304(c) of this title 
    warrant 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.

(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.)


                      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

    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''.

                  Section Referred to in Other Sections

    This section is referred to in section 306 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,
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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software