11-U.S.C.-1108
§1108 – Authorization to Operate Business
Pathway
Title 11 > Chapter 11 > Subchapter I > Section 1108
Details
- Reference: Section 1108
- Legend: §1108 – Authorization to Operate Business
- USCode Year: 2013
Provision Content
Unless the court, on request of a party in interest and after notice and a hearing, orders otherwise, the trustee may operate the debtors business.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2629; Pub. L. 98–353, title III, §504, July 10, 1984, 98 Stat. 384.)
Historical and Revision Notes
legislative statements
The House amendment adopts section 1108 of the House bill in preference to the style of an identical substantive provision contained in the Senate amendment. Throughout title 11 references to a trustee is read to include other parties under various sections of the bill. For example, section 1107 applies to give the debtor in possession all the rights and powers of a trustee in a case under chapter 11; this includes the power of the trustee to operate the debtors business under section 1108.
senate report no. 95–989
This section permits the debtors business to continue to be operated, unless the court orders otherwise. Thus, in a reorganization case, operation of the business will be the rule, and it will not be necessary to go to the court to obtain an order authorizing operation.
house report no. 95–595
This section does not presume that a trustee will be appointed to operate the business of the debtor. Rather, the power granted to trustee under this section is one of the powers that a debtor in possession acquires by virtue of proposed 11 U.S.C. 1107.
Amendments
1984—Pub. L. 98–353 inserted , on request of a party in interest and after notice and a hearing,.
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.
U.S. Encyclopedia of Law Coverage
11-U.S.C.-1108 in the Legal Encyclopedia: Bankruptcy
In this entry about 11-U.S.C.-1108, find legal reference material, bibliographies and premiere content related to bankruptcy in the American Encyclopedia of Law, presenting a comprehensive view of the United States bankruptcy-specific issues, written by authorities in the field.
11-U.S.C.-109 in the Legal Encyclopedia: Bankruptcy Reorganization
In this entry about 11-U.S.C.-109, find legal reference material, bibliographies and premiere content related to bankruptcy reorganization in the American Encyclopedia of Law, presenting a comprehensive view of the United States bankruptcy reorganization-specific issues, written by authorities in the field.
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