Title 11BankruptcyRelease 119-73

§904 Limitation on jurisdiction and powers of court

Title 11 › Chapter CHAPTER 9— - ADJUSTMENT OF DEBTS OF A MUNICIPALITY › Subchapter SUBCHAPTER I— - GENERAL PROVISIONS › § 904

Last updated Apr 6, 2026|Official source

Summary

Stops the court from, unless the debtor agrees or the plan allows it, limiting a debtor’s political or governmental powers, their property or revenues, or their use of income‑producing property.

Full Legal Text

Title 11, §904

Bankruptcy — Source: USLM XML via OLRC

Notwithstanding any power of the court, unless the debtor consents or the plan so provides, the court may not, by any stay, order, or decree, in the case or otherwise, interfere with—
(1)any of the political or governmental powers of the debtor;
(2)any of the property or revenues of the debtor; or
(3)the debtor’s use or enjoyment of any income-producing property.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

senate report no. 95–989

This section adopts the policy of section 82(c) of current law [section 402(c) of former title 11]. The only change in this section from section 82(c) is to conform the section to the style and cross-references of S. 2266.

house report no. 95–595

This section adopts the policy of section 82(c) of current law [section 402(c) of former title 11]. The Usery case underlines the need for this limitation on the court’s powers. The only change in this section from section 82(c) is to conform the section to the style and cross-references of H.R. 8200. This section makes clear that the court may not interfere with the choices a municipality makes as to what services and benefits it will provide to its inhabitants.

Reference

Citations & Metadata

Citation

11 U.S.C. § 904

Title 11Bankruptcy

Last Updated

Apr 6, 2026

Release point: 119-73