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
(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
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
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
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.
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.