11 U.S.C. § 930 — Dismissal

Page 233 TITLE 11—BANKRUPTCY § 941 § 928. Post petition effect of security interest (a) Notwithstanding section 552(a) of this title and subject to subsection (b) of this section, spe- cial revenues acquired by the debtor after the commencement of the case shall remain subject to any lien resulting from any security agree- ment entered into by the debtor before the com- mencement of the case. (b) Any such lien on special revenues, other than municipal betterment assessments, derived from a project or system shall be subject to the necessary operating expenses of such project or system, as the case may be. (Added Pub. L. 100–597, § 8, Nov. 3, 1988, 102 Stat. 3029.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Nov. 3, 1988, but not applicable to any case commenced under this title before that date, see section 12 of Pub. L. 100–597, set out as an Effective Date of 1988 Amendment note under section 101 of this title. § 929. Municipal leases A lease to a municipality shall not be treated as an executory contract or unexpired lease for the purposes of section 365 or 502(b)(6) of this title solely by reason of its being subject to ter- mination in the event the debtor fails to appro- priate rent. (Added Pub. L. 100–597, § 9, Nov. 3, 1988, 102 Stat. 3030.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Nov. 3, 1988, but not applicable to any case commenced under this title before that date, see section 12 of Pub. L. 100–597, set out as an Effective Date of 1988 Amendment note under section 101 of this title. § 930. Dismissal (a) After notice and a hearing, the court may dismiss a case under this chapter for cause, in- cluding— (1) want of prosecution; (2) unreasonable delay by the debtor that is prejudicial to creditors; (3) failure to propose a plan within the time fixed under section 941 of this title; (4) if a plan is not accepted within any time fixed by the court; (5) denial of confirmation of a plan under section 943(b) of this title and denial of addi- tional time for filing another plan or a modi- fication of a plan; or (6) if the court has retained jurisdiction after confirmation of a plan— (A) material default by the debtor with re- spect to a term of such plan; or (B) termination of such plan by reason of the occurrence of a condition specified in such plan. (b) The court shall dismiss a case under this chapter if confirmation of a plan under this chapter is refused. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623, § 927; Pub. L. 98–353, title III, § 496, July 10, 1984, 98 Stat. 384; renumbered § 930, Pub. L. 100–597, § 7(1), Nov. 3, 1988, 102 Stat. 3029.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 927(b) of the House amendment is derived from section 927(b) of the Senate bill. The provision re- quires mandatory dismissal if confirmation of a plan is refused. The House amendment deletes section 929 of the Sen- ate amendment as unnecessary since the bankruptcy court has original exclusive jurisdiction of all cases under chapter 9. The House amendment deletes section 930 of the Sen- ate amendment and incorporates section 507(a)(1) by reference. SENATE REPORT NO. 95–989 Section 927 conforms to section 98 of current law [sec- tion 418 of former title 11]. The Section permits dis- missal by the court for unreasonable delay by the debt- or, failure to propose a plan, failure of acceptance of a plan, or default by the debtor under a conformed plan. Mandatory dismissal is required if confirmation is re- fused. HOUSE REPORT NO. 95–595 Section 926 [enacted as section 927] generally con- forms to section 98(a) [section 418(a) of former title 11] of current law. Stylistic changes have been made to conform the language with that used in chapter 11, sec- tion 1112. The section permits dismissal by the court for unreasonable delay by the debtor that is prejudicial to creditors, failure to propose a plan, failure of con- firmation of a plan, or material default by the debtor under a confirmed plan. The only significant change from current law lies in the second ground. Currently, section 98(a)(2) provides for dismissal if a proposed plan is not accepted, and section 98(b) requires dismissal if an accepted plan is not confirmed. In order to provide greater flexibility to the court, the debtor, and credi- tors, the bill allows the court to permit the debtor to propose another plan if the first plan is not confirmed. In that event the debtor need not, as under current law, commence the case all over again. This could provide savings in time and administrative expenses if a plan is denied confirmation. Editorial Notes AMENDMENTS 1984—Subsec. (b). Pub. L. 98–353 substituted ‘‘con- firmation of a plan under this chapter’’ for ‘‘confirma- tion’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title. SUBCHAPTER III—THE PLAN § 941. Filing of plan The debtor shall file a plan for the adjustment of the debtor’s debts. If such a plan is not filed with the petition, the debtor shall file such a plan at such later time as the court fixes. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2624.) HISTORICAL AND REVISION NOTES SENATE REPORT NO. 95–989 Section 941 gives the debtor the exclusive right to propose a plan, and directs that the debtor propose one