Title 11BankruptcyRelease 119-73

§721 Authorization to operate business

Title 11 › Chapter CHAPTER 7— - LIQUIDATION › Subchapter SUBCHAPTER II— - COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE › § 721

Last updated Apr 6, 2026|Official source

Full Legal Text

Title 11, §721

Bankruptcy — Source: USLM XML via OLRC

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.

Legislative History

Notes & Related Subsidiaries

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.

Reference

Citations & Metadata

Citation

11 U.S.C. § 721

Title 11Bankruptcy

Last Updated

Apr 6, 2026

Release point: 119-73