11 USC 721: Authorization to operate business
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11 USC 721: Authorization to operate business Text contains those laws in effect on November 21, 2024
From Title 11-BANKRUPTCYCHAPTER 7-LIQUIDATIONSUBCHAPTER II-COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE
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§721. Authorization to operate business

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.