CHAPTER 3CASE 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.
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
Section Referred to in Other Sections
This section is referred to in section 306 of this title.