§721. Authorization to operate business
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Verbatim text below is from the United States Code (GovInfo), a public-domain U.S. government work.
Full Text
§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.
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.
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What is Section 721 of the 11 USC Code?+
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.
Sourced from 11 U.S. Code § 721 - Authorization to operate business
What assets can I keep in chapter 11?+
In a Chapter 11 reorganization bankruptcy, the debtor-in-possession generally retains all the business and personal property during the process of negotiating the reorganization plan to pay off debtors.
Sourced from Can I Keep My Personal Property in Chapter 11 Bankruptcy?
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