11-U.S.C.-721

§721 – Authorization to Operate Business

Pathway

Title 11 > Chapter 7 > Subchapter II > Section 721

Details

• Reference: Section 721
• Legend: §721 – Authorization to Operate Business
• USCode Year: 2013

Provision Content

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.

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

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.

U.S. Encyclopedia of Law Coverage

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