context: The plain text of the Bankruptcy Code sheds light on two important aspects of Section 305(a)(1). First, abstaining under Section 305(a)(1) must be in the interest of the debtor, in addition to the creditors.
citation_a.signal: no signal
citation_a.identifier: 381 B.R. 455, 462
citation_a.parenthetical: "[T]he interests of both the debtor and its creditors.must be served by granting the requested relief."
citation_a.sentence: In re Monitor Single Lift I, Ltd., 381 B.R. 455, 462 (Bankr.S.D.N.Y.2008) (“[T]he interests of both the debtor and its creditors.must be served by granting the requested relief.”); In re Schur Mgmt. Co., Ltd., 323 B.R. 123, 129 (Bankr.S.D.N.Y.2005) (“The test for suspension (as well as dismissal) is whether both the debtor and the creditors would be ‘better served’ by such action.”); In re Globo Comunicares e Participares S.A., 317 B.R. 235, 255 (S.D.N.Y.2004) (“This test requires that both creditors and debtors benefit from the dismissal, rather than applying a simple balancing test to determine whether dismissal is appropriate.”); In re 82 Milbar Blvd.
citation_b.signal: see also
citation_b.identifier: 305 B.R. 618, 621
citation_b.parenthetical: considering the "prejudice to the Debtor" in whether to dismiss the case under Section 305(a
citation_b.sentence: Inc., 91 B.R. 213, 215 (Bankr.E.D.N.Y.1988) (“In addition to the creditors’ interest it is necessary to prove that dismissal under § 305 would also be in the best interest of the debtor.”); see also In re Williams, 305 B.R. 618, 621 (Bankr.D.Conn.2004) (considering the “prejudice to the Debtor” in whether to dismiss the case under Section 305(a)(1)); Alan N. Resnick & Henry J. Sommer, 2 Collier on Bankruptcy ¶ 305.01[1] (16th ed. 2012) (“Section 305 is reserved for those rare occasions when both the creditors generally and the debtor itself are better served by dismissal or suspension.”)