11 U.S.C. § 921

Petition and proceedings relating to petition

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(a) Notwithstanding sections 109(d) and 301 of this title, a case under this chapter concerning an unincorporated tax or special assessment district that does not have such district’s own officials is commenced by the filing under section 301 of this title of a petition under this chapter by such district’s governing authority or the board or body having authority to levy taxes or assessments to meet the obligations of such district.(b) The chief judge of the court of appeals for the circuit embracing the district in which the case is commenced shall designate the bankruptcy judge to conduct the case.(c) After any objection to the petition, the court, after notice and a hearing, may dismiss the petition if the debtor did not file the petition in good faith or if the petition does not meet the requirements of this title.(d) If the petition is not dismissed under subsection (c) of this section, the court shall order relief under this chapter notwithstanding section 301(b).(e) The court may not, on account of an appeal from an order for relief, delay any proceeding under this chapter in the case in which the appeal is being taken; nor shall any court order a stay of such proceeding pending such appeal. The reversal on appeal of a finding of jurisdiction does not affect the validity of any debt incurred that is authorized by the court under section 364(c) or 364(d) of this title.(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2622; Pub. L. 98–353, title III, § 494, July 10, 1984, 98 Stat. 383; Pub. L. 109–8, title V, § 501(a), Apr. 20, 2005, 119 Stat. 118.)Historical and Revision Noteslegislative statements

Section 905 of the Senate amendment is incorporated as section 921(b) of the House amendment with the difference that the chief judge of the circuit embracing the district in which the case is commenced designates a bankruptcy judge to conduct the case in lieu of a district judge as under present law. It is intended that a municipality may commence a case in any district in which the municipality is located, as under present law. Section 906 of the Senate amendment has been adopted in substance in section 109(c) of the House amendment.

senate report no. 95–989

Section 905 [enacted as section 921(b)] adopts the procedures for selection of the judge for the chapter 9 case as found in current section 82(d) [section 402(d) of former title 11]. It is expected that the large chapter 9 case might take up almost all the judicial time of the presiding judge and involve very complex legal questions. Selection should not be left to chance or the luck of the draw. This provision will insure that calendar demands and levels of experience can be considered in the selection of the judge in a chapter 9 case.

house report no. 95–595

Subsection (a) is derived from section 85(a) [section 405(a) of former title 11], second sentence, of current law. There is no substantive change in the law. The subsection permits a municipality that does not have its own officers to be moved into chapter 9 by the action of the body or board that has authority to levy taxes for the municipality.

Subsection (b) permits a party in interest to object to the filing of the petition not later than 15 days after notice. This provision tracks the third sentence of section 85(a) [section 405(a) of former title 11], except that the provision for publication in section 85(a) is left to the Rules (see Rule 9–14), and therefore the determinative date is left less definite.

Subsection (c) permits the court to dismiss a petition not filed in good faith or not filed in compliance with the requirements of the chapter. This provision is the fourth sentence of section 85(a) [section 405(a) of former title 11].

Subsection (d) directs the court to order relief on the petition if it does not dismiss the case under subsection (c).

Subsection (e) contains the fifth and sixth sentences of section 85(a) [section 405(a) of former title 11].

Editorial NotesAmendments

2005—Subsec. (d). Pub. L. 109–8 inserted “notwithstanding section 301(b)” before period at end.

1984—Subsec. (a). Pub. L. 98–353, § 494(c), substituted “109(d)” for “109(c)”.

Subsec. (c). Pub. L. 98–353, § 494(a), substituted “any” for “an”, and “petition if the debtor did not file the petition in good faith” for “petition, if the debtor did not file the petition in good faith,”.

Subsec. (d). Pub. L. 98–353, § 494(b), (d), redesignated subsec. (e) as (d) and substituted “subsection (c)” for “subsection (d)”. No former subsec. (d) had been enacted.

Subsecs. (e), (f). Pub. L. 98–353, § 494(b), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d).

Statutory Notes and Related SubsidiariesEffective 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.

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.

Notes of Decisions

Cited in 30 cases, 1982–2016 · leading case: In re City of Detroit, 504 B.R. 191 (Bankr. E.D. Mich. 2013).

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In re City of Detroit, 504 B.R. 191 (Bankr. E.D. Mich. 2013). · cites it 9× “Should the case be dismissed under 11 U.S.C. § 921 (c) because the City of Detroit did not file its bankruptcy petition in good faith? C.”

In re City of Detroit, 504 B.R. 97 (Bankr. E.D. Mich. 2013). · cites it 7× “The Court further finds that the City filed the petition in good faith and that therefore the petition is not subject to dismissal under 11 U.S.C. § 921 (c). The Court concludes that it has jurisdiction over this matter under 28 U.”

In re City of Stockton, 475 B.R. 720 (Bankr. E.D. Cal. 2012). · cites it 4× “11 U.S.C. § 921 (d). Rather, the municipality must be prepared to litigate its way to an order for relief in its voluntary case by demonstrating its eligibility to be a chapter 9 debtor and establishing that it filed the petition in good faith.”

In re City of Stockton, 493 B.R. 772 (Bankr. E.D. Cal. 2013). · cites it 4× “11 U.S.C. § 921 (c)-(d). Relevant parts of California’s gateway statute, Government Code §§ 53760, 53760.”

In Re Valley Health Sys., 383 B.R. 156 (Bankr. C.D. Cal. 2008). · cites it 2× “” 11 U.S.C. § 921 (c). If the court does not dismiss the petition under § 921(c), then it must order relief under chapter 9.”

In Re: Ronald M. Tamecki, Sr., Debtor Ronald M. Tamecki, Sr. v. Lawrence G. Frank, 229 F.3d 205 (3rd Cir. 2000). “See 11 U.S.C. § 921 (c). The Bank-ruplcy Code does require that repayment or reorganization plans — as opposed to bankruptcy cases themselves — be proposed in good *209 faith.”

In Re Villages at Castle Rock Metro. Dist. No. 4, 145 B.R. 76 (Bankr.D. Colo. 1990). · cites it 3× “§ 923 , in part to give creditors an opportunity to object to District 4’s Petition pursuant to 11 U.S.C. § 921 (c). Richard S. Kitchen, Sr.”

In Re Glunk, 342 B.R. 717 (Bankr. E.D. Pa. 2006). “11 U.S.C. § 921 . 13 Thus, it is not surprising that there has been some debate as to whether there is a “good faith” filing requirement in chapter 7 cases, and whether the absence of good faith is a ground for dismissal of a chapter 7 case.”

In re City of Detroit, 524 B.R. 147 (Bankr. E.D. Mich. 2014). “The Court found, “in one form or another, all of the objecting parties have taken the position that the City did not file its chapter 9 petition in good faith and that this Court should exercise its discretion under 11 U.S.C. § 921 (c) to dismiss the case.” Id.”

City of Cent. Falls v. Cent. Falls Teachers' Union, Rhode Island Council 94, Local 1627, 468 B.R. 36 (Bankr. D.R.I. 2012). · cites it 2× “Though I am a bankruptcy judge of the District of Massachusetts, by designation under 11 U.S.C. § 921 (b), I am a bankruptcy judge of the District of Rhode Island for this bankruptcy case.”

In Re Salazar, 339 B.R. 622 (Bankr. S.D. Tex. 2006). “” 11 U.S.C. § 921 (c) and (d). To the extent that dismissing a petition strikes the petition, the two actions are identical.”

Newberry v. City of San Bernardino (In re City of San Bernardino), 558 B.R. 321 (C.D. Cal. 2016). “See 11 U.S.C. § 921 (dismissal of Chapter 9 petition for bad faith can occur only after “notice” is given).”

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