Title 11 — BankruptcyRelease 119-73not60
§1195 Transactions with Professionals
Title 11 › Chapter 11— REORGANIZATION › Subchapter V— SMALL BUSINESS DEBTOR REORGANIZATION › § 1195
Summary
Allows a debtor to hire someone even if that person has a claim under $10,000 that began before the bankruptcy case started. Having that small, pre‑case claim by itself does not bar the person from employment.
Full Legal Text
Title 11, §1195
Bankruptcy — Source: USLM XML via OLRC
Notwithstanding section 327(a) of this title, a person is not disqualified for employment under section 327 of this title, by a debtor solely because that person holds a claim of less than $10,000 that arose prior to commencement of the case.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as an
Effective Date
of 2019 Amendment note under section 101 of this title.
Reference
Citations & Metadata
Citation
11 U.S.C. § 1195
Title 11 — Bankruptcy
Last Updated
Apr 3, 2026
Release point: 119-73not60