Title 11 — BankruptcyRelease 119-73
§704 Duties of trustee
Title 11 › Chapter CHAPTER 7— - LIQUIDATION › Subchapter SUBCHAPTER I— - OFFICERS AND ADMINISTRATION › § 704
Summary
A trustee is the person in charge of the bankrupt person’s property. The trustee must collect the estate’s assets, turn them into money, and close the case as quickly as is fair to those with a stake. The trustee must keep records and be responsible for everything received. The trustee must make sure the debtor follows the repayment choice the debtor said they would under section 521(a)(2)(B). The trustee must investigate the debtor’s finances, review and object to improper claims, and, if needed, oppose the debtor’s discharge. The trustee must give parties information unless the court stops it. If the debtor’s business keeps running, the trustee must file regular reports with the court, the U.S. trustee, and tax authorities, and must file a final report and account when done. The trustee must give special notice for domestic support claims, keep any ERISA plan-administrator duties the debtor had, and try hard to move patients from a closing health care business to a nearby provider that offers similar services and reasonable quality. For individual debtors, the U.S. trustee must review the debtor’s papers and, within 10 days after the first meeting of creditors, file a statement about whether the case is presumed to be an abuse under section 707(b). The court must give that statement to all creditors within 7 days. If the U.S. trustee says the case is presumed abusive and the debtor’s yearly income (current monthly income times 12) meets the state median tests (for one-person households the state median for 1 earner; for households of two or more the highest state median for a family of that size or smaller), then within 30 days after filing the statement the U.S. trustee must either file a motion to dismiss or convert under 707(b) or file a statement explaining why not. For domestic support claims, the trustee must notify the claim holder and the state child support agency, give contact information, and, when a discharge is granted, tell them the discharge, the debtor’s last known address and employer, and which creditors have nondischargeable or reaffirmed claims. A creditor who gives a debtor’s last known address on request from the claim holder or agency is not liable for doing so.
Full Legal Text
Title 11, §704
Bankruptcy — Source: USLM XML via OLRC
(a)The trustee shall—
(1)collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties in interest;
(2)be accountable for all property received;
(3)ensure that the debtor shall perform his intention as specified in section 521(a)(2)(B) of this title;
(4)investigate the financial affairs of the debtor;
(5)if a purpose would be served, examine proofs of claims and object to the allowance of any claim that is improper;
(6)if advisable, oppose the discharge of the debtor;
(7)unless the court orders otherwise, furnish such information concerning the estate and the estate’s administration as is requested by a party in interest;
(8)if the business of the debtor is authorized to be operated, file with the court, with the United States trustee, and with any governmental unit charged with responsibility for collection or determination of any tax arising out of such operation, periodic reports and summaries of the operation of such business, including a statement of receipts and disbursements, and such other information as the United States trustee or the court requires;
(9)make a final report and file a final account of the administration of the estate with the court and with the United States trustee;
(10)if with respect to the debtor there is a claim for a domestic support obligation, provide the applicable notice specified in subsection (c);
(11)if, at the time of the commencement of the case, the debtor (or any entity designated by the debtor) served as the administrator (as defined in section 3 of the Employee Retirement Income Security Act of 1974) of an employee benefit plan, continue to perform the obligations required of the administrator; and
(12)use all reasonable and best efforts to transfer patients from a health care business that is in the process of being closed to an appropriate health care business that—
(A)is in the vicinity of the health care business that is closing;
(B)provides the patient with services that are substantially similar to those provided by the health care business that is in the process of being closed; and
(C)maintains a reasonable quality of care.
(b)(1)With respect to a debtor who is an individual in a case under this chapter—
(A)the United States trustee (or the bankruptcy administrator, if any) shall review all materials filed by the debtor and, not later than 10 days after the date of the first meeting of creditors, file with the court a statement as to whether the debtor’s case would be presumed to be an abuse under section 707(b); and
(B)not later than 7 days after receiving a statement under subparagraph (A), the court shall provide a copy of the statement to all creditors.
(2)The United States trustee (or bankruptcy administrator, if any) shall, not later than 30 days after the date of filing a statement under paragraph (1), either file a motion to dismiss or convert under section 707(b) or file a statement setting forth the reasons the United States trustee (or the bankruptcy administrator, if any) does not consider such a motion to be appropriate, if the United States trustee (or the bankruptcy administrator, if any) determines that the debtor’s case should be presumed to be an abuse under section 707(b) and the product of the debtor’s current monthly income, multiplied by 12 is not less than—
(A)in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner; or
(B)in the case of a debtor in a household of 2 or more individuals, the highest median family income of the applicable State for a family of the same number or fewer individuals.
(c)(1)In a case described in subsection (a)(10) to which subsection (a)(10) applies, the trustee shall—
(A)(i)provide written notice to the holder of the claim described in subsection (a)(10) of such claim and of the right of such holder to use the services of the State child support enforcement agency established under section 464 and 466 of the Social Security Act for the State in which such holder resides, for assistance in collecting child support during and after the case under this title;
(ii)include in the notice provided under clause (i) the address and telephone number of such State child support enforcement agency; and
(iii)include in the notice provided under clause (i) an explanation of the rights of such holder to payment of such claim under this chapter;
(B)(i)provide written notice to such State child support enforcement agency of such claim; and
(ii)include in the notice provided under clause (i) the name, address, and telephone number of such holder; and
(C)at such time as the debtor is granted a discharge under section 727, provide written notice to such holder and to such State child support enforcement agency of—
(i)the granting of the discharge;
(ii)the last recent known address of the debtor;
(iii)the last recent known name and address of the debtor’s employer; and
(iv)the name of each creditor that holds a claim that—
(I)is not discharged under paragraph (2), (4), or (14A) of section 523(a); or
(II)was reaffirmed by the debtor under section 524(c).
(2)(A)The holder of a claim described in subsection (a)(10) or the State child support enforcement agency of the State in which such holder resides may request from a creditor described in paragraph (1)(C)(iv) the last known address of the debtor.
(B)Notwithstanding any other provision of law, a creditor that makes a disclosure of a last known address of a debtor in connection with a request made under subparagraph (A) shall not be liable by reason of making such disclosure.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Legislative Statements
section 704(8) of the Senate amendment is deleted in the House amendment. Trustees should give constructive notice of the commencement of the case in the manner specified under section 549(c) of title 11.
senate report no. 95–989
The essential duties of the trustee are enumerated in this section. Others, or elaborations on these, may be prescribed by the Rules of Bankruptcy Procedure to the extent not inconsistent with those prescribed by this section. The duties are derived from section 47a of the Bankruptcy Act [section 75(a) of former title 11]. The trustee’s principal duty is to collect and reduce to money the property of the estate for which he serves, and to close up the estate as expeditiously as is compatible with the best interests of parties in interest. He must be accountable for all property received, and must investigate the financial affairs of the debtor. If a purpose would be served (such as if there are assets that will be distributed), the trustee is required to examine proofs of claims and object to the allowance of any claim that is improper. If advisable, the trustee must oppose the discharge of the debtor, which is for the benefit of general unsecured creditors whom the trustee represents. The trustee is responsible to furnish such information concerning the estate and its administration as is requested by a party in interest. If the business of the debtor is authorized to be operated, then the trustee is required to file with governmental units charged with the responsibility for collection or determination of any tax arising out of the operation of the business periodic reports and summaries of the operation, including a statement of receipts and disbursements, and such other information as the court requires. He is required to give constructive notice of the commencement of the case in the manner specified under section 342(b).
Editorial Notes
References in Text
section 3 of the Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(11), is classified to section 1002 of Title 29, Labor. section 464 and 466 of the Social Security Act, referred to in subsec. (c)(1)(A)(i), are classified to section 664 and 666, respectively, of Title 42, The Public Health and Welfare.
Amendments
2010—Subsec. (a)(3). Pub. L. 111–327 substituted “521(a)(2)(B)” for “521(2)(B)”. 2009—Subsec. (b)(1)(B). Pub. L. 111–16 substituted “7 days” for “5 days”. 2005—Pub. L. 109–8, § 102(c)(1), designated existing provisions as subsec. (a). Subsec. (a)(10). Pub. L. 109–8, § 219(a)(1), added par. (10). Subsec. (a)(11). Pub. L. 109–8, § 446(b), added par. (11). Subsec. (a)(12). Pub. L. 109–8, § 1105(a), added par. (12). Subsec. (b). Pub. L. 109–8, § 102(c)(2), added subsec. (b). Subsec. (c). Pub. L. 109–8, § 219(a)(2), added subsec. (c). 1986—Par. (8). Pub. L. 99–554, § 217(1), inserted “, with the United States trustee,” after “with the court” and “the United States trustee or” after “information as”. Par. (9). Pub. L. 99–554, § 217(2), inserted “with the United States trustee” after “court”. 1984—Par. (1). Pub. L. 98–353, § 474, substituted “close such estate” for “close up such estate”. Pars. (3) to (9). Pub. L. 98–353, § 311(a), added par. (3) and redesignated former pars. (3) to (8) as (4) to (9), respectively.
Statutory Notes and Related Subsidiaries
Effective Date
of 2009 AmendmentAmendment by Pub. L. 111–16 effective Dec. 1, 2009, see section 7 of Pub. L. 111–16, set out as a note under section 109 of this title.
Effective Date
of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such
Effective Date
, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
Effective Date
of 1986 Amendment
Effective Date
and applicability of amendment by Pub. L. 99–554 dependent upon the judicial district involved, see section 302(d), (e) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Effective Date
of 1984 AmendmentAmendment 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.
Reference
Citations & Metadata
Citation
11 U.S.C. § 704
Title 11 — Bankruptcy
Last Updated
Apr 6, 2026
Release point: 119-73