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11 U.S.C. § 721

U.S. CodeFederalPositive Law
Authorization to operate business
About This Law
/us/usc/t11/s721
Title
11 — Bankruptcy
Chapter
CH7
Release
119-84
Release Date
2026-04-17

Section Text

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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. 95–989This 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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