FEDERAL · 11 U.S.C. · Chapter SUBCHAPTER II—COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE

Authorization to operate business

11 U.S.C. § 721
Title11Bankruptcy
ChapterSUBCHAPTER II—COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE

This text of 11 U.S.C. § 721 (Authorization to operate business) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
11 U.S.C. § 721.

Text

The court may authorize the trustee to operate the business of the debtor for a limited period, if such operation is in the best interest of the estate and consistent with the orderly liquidation of the estate.

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Source Credit

History

(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2606.)

Editorial Notes

Historical and Revision Notes

senate report no. 95–989
This section is derived from section 2a(5) of the Bankruptcy Act [section 11(a)(5) of former title 11]. It permits the court to authorize the operation of any business of the debtor for a limited period, if the operation is in the best interest of the estate and consistent with orderly liquidation of the estate. An example is the operation of a watch company to convert watch movements and cases into completed watches which will bring much higher prices than the component parts would have brought.

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11 U.S.C. § 721, Counsel Stack Legal Research, https://law.counselstack.com/usc/11/721.