Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 11– REORGANIZATION

Sub Chapter – Officers and Administration

Sec. 1108. Authorization to operate business

    Unless the court, on request of a party in interest and after notice 
and a hearing, orders otherwise, the trustee may operate the debtor's 
business.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2629; Pub. L. 98-353, title III, 
Sec. 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 debtor's business under section 
1108.


                        senate report no. 95-989

    This section permits the debtor's 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 327, 363, 364 of this title.


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For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources

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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software