Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 13– ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR INCOME

Sub Chapter – Officers, Administration and the Estate

Sec. 1304. Debtor engaged in business

  (a) A debtor that is self-employed and incurs trade credit in the 
production of income from such employment is engaged in business.
    (b) Unless the court orders otherwise, a debtor engaged in business 
may operate the business of the debtor and, subject to any limitations 
on a trustee under sections 363(c) and 364 of this title and to such 
limitations or conditions as the court prescribes, shall have, exclusive 
of the trustee, the rights and powers of the trustee under such 
sections.
    (c) A debtor engaged in business shall perform the duties of the 
trustee specified in section 704(8) of this title.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2646; Pub. L. 98-353, title III, 
Secs. 311(b)(2), 526, July 10, 1984, 98 Stat. 355, 389.)


                      Historical and Revision Notes

                         legislative statements

    Section 1304(b) of the House amendment adopts the approach taken in 
the comparable section of the Senate amendment as preferable to the 
position taken in the House bill.


                        senate report no. 95-989

    Increased access to the simpler, speedier, and less expensive debtor 
relief provisions of chapter 13 is accomplished by permitting debtors 
engaged in business to proceed under chapter 13, provided their income 
is sufficiently stable and regular to permit compliance with a chapter 
13 plan [section 101(24)] and that the debtor (or the debtor and spouse) 
do not owe liquidated, noncontingent unsecured debts of $50,000, or 
liquidated, noncontingent secured debts of $200,000 (Sec. 109(d)).
    Section 1304(a) states that a self-employed individual who incurs 
trade credit in the production of income is a debtor engaged in 
business.
    Subsection (b) empowers a chapter 13 debtor engaged in business to 
operate his business, subject to the rights, powers and limitations that 
pertain to a trustee under sections 363(c) and 364 of title 11, and 
subject to such further limitations and conditions as the court may 
prescribe.
    Subsection (c) requires a chapter 13 debtor engaged in business to 
file with the court certain financial statements relating to the 
operation of the business.


                               Amendments

    1984--Subsec. (b). Pub. L. 98-353, Sec. 526, struck out the comma 
after ``of the debtor''.
    Subsec. (c). Pub. L. 98-353, Sec. 311(b)(2), substituted ``section 
704(8)'' for ``section 704(7)''.


                    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 363, 364 of this title.

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Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
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For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources

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