Title 11 — BankruptcyRelease 119-73not60
§1204 Removal of Debtor as Debtor in Possession
Title 11 › Chapter 12— ADJUSTMENT OF DEBTS OF A FAMILY FARMER OR FISHERMAN WITH REGULAR ANNUAL INCOME › Subchapter I— OFFICERS, ADMINISTRATION, AND THE ESTATE › § 1204
Summary
A party with a stake can ask the court, and after notice and a hearing the court must remove the debtor from control for cause (for example, fraud or gross mismanagement, before or after the case began). After notice and a hearing, a party can also ask the court to restore the debtor, and the court may do so.
Full Legal Text
Title 11, §1204
Bankruptcy — Source: USLM XML via OLRC
(a)On request of a party in interest, and after notice and a hearing, the court shall order that the debtor shall not be a debtor in possession for cause, including fraud, dishonesty, incompetence, or gross mismanagement of the affairs of the debtor, either before or after the commencement of the case.
(b)On request of a party in interest, and after notice and a hearing, the court may reinstate the debtor in possession.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification For repeal of section effective Oct. 1, 1998, and subsequent reenactment of section, see note set out preceding section 1201 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
sPermanent reenactment of section effective July 1, 2005, see section 1001(a)(2) of Pub. L. 109–8, set out as a Repeal, Reenactment, and Termination of Chapter note under section 1201 of this title. For
Effective Date
s of section and
Amendments
extending periods for which section was reenacted prior to permanent reenactment, see
Effective Date
and
Effective Date
of 1999, 2001, 2002, 2003, and 2004 Amendment notes set out under section 1201 of this title.
Reference
Citations & Metadata
Citation
11 U.S.C. § 1204
Title 11 — Bankruptcy
Last Updated
Apr 3, 2026
Release point: 119-73not60