Title 11, BankruptcyRelease 119-102
§721 Authorization to Operate Business
Title 11 › CHAPTER 7 — LIQUIDATION › SUBCHAPTER II — COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE › § 721
Summary
Court may let the trustee run the debtor’s business briefly to aid orderly estate liquidation.
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 11, Bankruptcy
Last Updated
Aug 21, 2026
Release point: 119-102