Title 11, BankruptcyRelease 119-102

§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

Last updated Aug 21, 2026|Official source

Summary

Court must remove a debtor from control for cause (e.g., fraud or gross mismanagement), at any time if a party asks and after notice and hearing; it may reinstate.

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

Aug 21, 2026

Release point: 119-102