In the Matter of Whitcomb & Keller Mortg. Co., Inc., Debtor. Data-Link Sys., Inc. v. Whitcomb & Keller Mortg. Co., Inc., 715 F.2d 375 (7th Cir. 1983). · Go Syfert
In the Matter of Whitcomb & Keller Mortg. Co., Inc., Debtor. Data-Link Sys., Inc. v. Whitcomb & Keller Mortg. Co., Inc., 715 F.2d 375 (7th Cir. 1983). Cases Citing This Book View Copy Cite
“he usual rule in such cases is that the court will allow a reasonable time for the debtor to assume or reject the lease or contract.”
114 citation events (32 in the last 25 years) across 40 distinct courts.
Strongest positive: In Re Collins & Aikman Corp. (mieb, 2008-04-01)
Treatment trajectory · 1984 → 2026 · click a year to view as-of
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Top citers, strongest first. 50 distinct citers. How cited ↗
discussed Cited as authority (verbatim quote) In Re Collins & Aikman Corp.
Bankr. E.D. Mich. · 2008 · quote attribution · 1 verbatim quote · confidence high
there is no room in the bankruptcy scheme for assumption of an executory contract by implication.
discussed Cited as authority (verbatim quote) In Re National Steel Corp. (2×) also: Cited as authority (rule)
Bankr. N.D. Ill. · 2004 · signal: see · quote attribution · 1 verbatim quote · confidence high
eneral principles governing contractual benefits and burdens do not always apply in the bankruptcy context.
discussed Cited as authority (verbatim quote) In Re Republic Technologies International, LLC
Bankr. N.D. Ohio · 2001 · quote attribution · 1 verbatim quote · confidence high
he usual rule in such cases is that the court will allow a reasonable time for the debtor to assume or reject the lease or contract.
discussed Cited as authority (rule) Dura Automotive Systems, LLC
Bankr. D. Del. · 2021 · confidence medium
Co., Inc., 715 F.2d 375, 380 (7th Cir. 1983) (holding that the language “subject to the court’s approval” in 11 U.S.C. § 365 (a) limits assumption to express order of the court); Komodo Cloud, LLC v. DB Holding Liquidation, Inc. (In re DB Holdings Liquidation, Inc.), 592 B.R. 539, 557 (D.
cited Cited as authority (rule) Paradigm Air Carriers, Inc. v. Texas Rangers Baseball Partners (In re Texas Rangers Baseball Partners)
Bankr. N.D. Tex. · 2014 · confidence medium
Co. (In re Whitcomb & Keller Mortgage Co.), 715 F.2d 375, 380 (7th Cir.1983) (an assumption of a contract under section 365 of the Bankruptcy Code cannot be implied); United States ex rel.
discussed Cited as authority (rule) Rubloff Development Group, Inc. v. Kmart Corp.
N.D. Ill. · 2008 · confidence medium
The purpose of the Bankruptcy Code is to suspend the normal operation of rights and obligations between the debtor and his creditors.” Data-Link Sys., Inc. v. Whitcomb & Keller Mortgage Co. (In re Whitcomb & Keller Mortgage Co.), 715 F.2d 375, 379 (7th Cir.1983) (internal quotation marks omitted).
cited Cited as authority (rule) O'BRIEN v. 1st Source Bank
Ind. Ct. App. · 2007 · confidence medium
Co., 715 F.2d 375, 378 (7th Cir.1983) (holding that the “contract remain[s] in effect until [a debtor makes] its decision to assume or reject the contract”).
cited Cited as authority (rule) Cohen Ex Rel. Friedman's Creditor Trust v. Ernst & Young, LLP (In Re Friedman's, Inc.)
Bankr. S.D. Ga. · 2007 · confidence medium
Co., Inc., 715 F.2d 375, 379 (7th Cir.1983).
cited Cited as authority (rule) In Re Abc-Naco, Inc., Debtor-Appellee, and Official Committee of Unsecured Creditors of Abc-Naco, Inc., Appeal Of: Softmart, Incorporated
7th Cir. · 2007 · confidence medium
Co., 715 F.2d 375, 380 (7th Cir.1983) (quoting In re Am.
discussed Cited as authority (rule) Softmart Inc v. ABC-NACO Inc
7th Cir. · 2007 · confidence medium
Co., 715 F.2d 375, 380 (7th Cir. 1983) (quoting In re Am.
discussed Cited as authority (rule) Gray Ex Rel. Dehon Inc. v. Western Environmental Services & Testing, Inc. (In Re Dehon Inc.)
Bankr. D. Mass. · 2006 · confidence medium
Executory Contracts and the Bankruptcy Code “[G]eneral principles governing contractual benefits and burdens do not always apply in the bankruptcy context,” Data-Link Sys., Inc. v. Whitcomb & Keller Mortgage Co., Inc. (In re Whitcomb & Keller Mortgage Co., Inc.), 715 F.2d 375, 379 (7th Cir.1983), and this is especially true in relation to the treatment of executory contracts pursuant to § 365 of the Bankruptcy Code.
discussed Cited as authority (rule) Mirant Americas Energy Marketing, L.P. v. Kern Oil & Refining Co. (In Re Mirant Corp.)
Bankr. N.D. Tex. · 2004 · confidence medium
Corp.), 67 F.3d 1021, 1025 (1st Cir.1995) (stating that rejection of a contract becomes effective upon entry of court order approving the rejection); Data-Link Sys., Inc. v. Whitcomb & Keller Mortgage Co., Inc. (In re Whitcomb & Keller Mortgage Co.), 715 F.2d 375, 378 (7th Cir.1983) (stating that the contract, which was in effect, at the time debtor filed its petition, remained in effect until it was rejected).
examined Cited as authority (rule) In Re Kmart Corp. (3×) also: Cited "see"
Bankr. N.D. Ill. · 2003 · confidence medium
Co., Inc., 715 F.2d 375, 379 (7th Cir.1983).
cited Cited as authority (rule) In Re Travelot Co.
Bankr. S.D. Ga. · 2002 · confidence medium
Co., (In re Whitcomb & Keller), 715 F.2d 375, 379 (7th Cir.1983); In re Monroe Well Serv., Inc., 83 B.R. 317, 323 (Bankr.E.D.Pa.1988) (stating that court has “broad discretion”).
discussed Cited as authority (rule) Phillips v. McLane Co. (In Re Fas Mart Convenience Stores, Inc.) (2×) also: Cited "see"
Bankr. E.D. Va. · 2002 · confidence medium
Ctr., 973 F.2d 1065 , 1078 (3d Cir.1992) (holding that the Department of Health and Human Resources remained obligated to pay for services rendered under a Medicare service provider agreement by a debtor hospital post-petition but prior to the assumption or rejection of the agreement); In re Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 379 (7th Cir.1983) (holding that the bankruptcy court did not err in issuing a restraining order compelling non-debtor party to an executory contract that had not been assumed or rejected to continue to perform under the terms of the executory contract un…
discussed Cited as authority (rule) In Re Sae Young Westmont-Chicago, L.L.C. (2×) also: Cited "see"
Bankr. N.D. Ill. · 2002 · confidence medium
National Labor Relations Boards 465 U.S. at 529 , 104 S.Ct. 1188 ; Matter of Whitcomb, 715 F.2d at 379 (policy is to give debtor reasonable time to decide whether to reject contract).
discussed Cited as authority (rule) In Re Greater Southeast Community Hospital Foundation, Inc.
D.D.C. · 2001 · confidence medium
Data-Link Systems, Inc. v. Whitcomb & Keller Mortgage Co., Inc. (In re Whitcomb & Keller Mortgage Co., Inc.), 715 F.2d 375, 380 (7th Cir.1983) (assumption of executory contract can occur only through court order).
discussed Cited as authority (rule) In Re Patient Education Media, Inc.
S.D.N.Y. · 1998 · confidence medium
Co. of New Hampshire), 884 F.2d 11, 14-15 (1st Cir.1989); Data-Link Sys., Inc. v. Whitcomb & Keller Mortgage Co. (In re Whitcomb & Keller Mortgage Co.), 715 F.2d 375, 378 (7th Cir.1983); McLean Indus., Inc. v. Medical Lab.
discussed Cited as authority (rule) In Re Crystal Apparel, Inc.
Bankr. S.D.N.Y. · 1998 · confidence medium
Corp., 67 F.3d 1021, 1025 (1st Cir.1995); In re Frontier Props., Inc., 979 F.2d 1358 (9th Cir.1992); Sea Harvest Corp. v. Riviera Land Co., 868 F.2d 1077 (9th Cir.1989); In re Harris Management Co., 791 F.2d 1412 , 1414 (9th Cir.1986); Whitcomb & Keller Mortgage Co., 715 F.2d 375, 380 (7th Cir.1983); see also, 3 Collier on Bankruptcy, ¶ 365.03, 365-21 (15th ed.1997).
discussed Cited as authority (rule) St. Francis Physician Network, Inc. v. Rush Prudential HMO, Inc. (In Re St. Francis Physician Network, Inc.)
Bankr. N.D. Ill. · 1997 · confidence medium
N.L.R.B. v. Bildisco & Bildisco, 465 U.S. 513, 532 , 104 S.Ct. 1188, 1199 , 79 L.Ed.2d 482 (1984); In the Matter of Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 378 (7th Cir.1983); In re S.N.A.
discussed Cited as authority (rule) In Re Swallen's, Inc.
Bankr. S.D. Ohio · 1997 · confidence medium
See In re University Medical Center, 973 F.2d 1065 , 1077 (3rd Cir.1992); In re Whitcomb & Keller Mortgage Co., 715 F.2d 375, 380 (7th Cir.1983); In re Reveo D.S., 109 B.R. 264, 268 (Bankr.N.D.Ohio 1989).
discussed Cited as authority (rule) S.N.A. Nut Co. v. Haagen-Dazs Co. (In Re S.N.A. Nut Co.) (2×) also: Cited "see"
Bankr. N.D. Ill. · 1996 · confidence medium
In re Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 380 (7th Cir.1983).
cited Cited as authority (rule) Thompson v. Board of Trustees (In Re Thompson)
Bankr. E.D. Va. · 1995 · confidence medium
Ctr., 973 F.2d at 1075 (quoting Data-Link Sys., Inc. v. Whitcomb & Keller Mortgage Co. (In re Whitcomb & Keller Mortgage Co.), 715 F.2d 375, 379 (7th Cir.1983)).
discussed Cited as authority (rule) United States v. Dewey Freight System, Inc.
1st Cir. · 1994 · confidence medium
See University Medical Ctr., 973 F.2d at 1076-79; In re Whitcomb & Keller Mortgage Co., 715 F.2d 375, 380 (7th Cir.1983); In re Polysat, Inc., 152 B.R. 886, 890-91 (Bankr.E.D.Pa.1993). 16 After a debtor commences a Chapter 11 proceeding, but before executory contracts are assumed or rejected under Sec. 365(a), those contracts remain in existence, enforceable by the debtor but not against the debtor.
cited Cited as authority (rule) United States ex rel. United States Postal Service v. Dewey Freight System, Inc.
8th Cir. · 1994 · confidence medium
See University Medical Ctr., 973 F.2d at 1076-79; In re Whitcomb & Keller Mortgage Co., 715 F.2d 375, 380 (7th Cir.1983); In re Polysat, Inc., 152 B.R. 886, 890-91 (Bankr.E.D.Pa.1993).
discussed Cited as authority (rule) In Re Child World, Inc.
Bankr. S.D.N.Y. · 1992 · confidence medium
Data-Link Systems, Inc. v. Whitcomb & Keller Mortgage Co., Inc. (In re Whitcomb & Keller Mortgage Co., Inc.), 715 F.2d 375, 380 (7th Cir.1983); In re Spencer, 139 B.R. 562, 564 (Bankr.M.D.Fla.1992); In re Curry Printers, Inc., 135 B.R. 564, 571 (Bankr.N.D.Ind.1991); In re Uly-Pak, Inc., 128 B.R. 763, 765 (Bankr.S.D.Ill.1991).
discussed Cited as authority (rule) In Re Market Square Inn, Inc., Glass Plaza Associates, a Limited Partnership (2×)
3rd Cir. · 1992 · confidence medium
Co., 715 F.2d 375, 379 (7th Cir.1983) (the trustee or debtor in possession is allowed under § 365(d) a reasonable time "within which to determine whether adoption or rejection of the executory contract would be beneficial to an effective reorganization") 4 The bankruptcy court found that, although rent was to have started on January 1, 1985, Schedule B, section E-12 of the Agreement excused the start date for a reasonable time due to the delay in negotiating for kitchen space with the Parking Authority.
cited Cited as authority (rule) In Re University Medical Center
3rd Cir. · 1992 · confidence medium
Co., 715 F.2d 375, 379 (7th Cir.1983).
cited Cited as authority (rule) In Re Joseph C. Spiess Co.
Bankr. N.D. Ill. · 1992 · confidence medium
Co., 715 F.2d 375, 379 (7th Cir.1983) (quoting H.R.Rep.
cited Cited as authority (rule) University Medical Center v. Sullivan (In re University Medical Center)
3rd Cir. · 1992 · confidence medium
Co., 715 F.2d 375, 379 (7th Cir.1983).
cited Cited as authority (rule) In Re Providence Television Ltd. Partnership
Bankr. N.D. Ill. · 1990 · confidence medium
Co., Inc., 715 F.2d 375, 380 (7th Cir.1983).
cited Cited as authority (rule) In Re O-Jay Foods, Inc.
Bankr. D. Minn. · 1989 · confidence medium
In re Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 378 (7th Cir.1983); Theatre Holding Corp. v. Mauro, 681 F.2d. 102, 105 (2d *898 Cir.1982); In re Sweetwater, 40 B.R. at 745 .
cited Cited as authority (rule) McLean Industries, Inc. v. Medical Laboratory Automation, Inc. (In Re McLean Industries, Inc.)
Bankr. S.D.N.Y. · 1989 · confidence medium
Data Link Sys., Inc. v. Whitcomb & Keller Mortgage Co. (In re Whitcomb & Keller Mortgage Co.), 715 F.2d 375, 380 (7th Cir.1983); 2 Collier on Bankruptcy, ¶ 365.03 at 365-28, 369-29.
discussed Cited as authority (rule) In Re Metro Transportation Co.
Bankr. E.D. Pa. · 1988 · confidence medium
We totally agree with the reasoning of In re Whitcomb & Keller Mortgage Co., 715 F.2d 375, 378-80 (7th Cir.1983); and In re Speed Fab-Crete of Nevada, 57 B.R. 720, 723-24 (Bankr.D.Nev.1986), which conclude that a debtor may not be estopped from rejecting a contract by postpetition conduct consistent with its assumption.
cited Cited as authority (rule) In Re Monroe Well Service, Inc.
Bankr. E.D. Pa. · 1988 · confidence medium
Matter of Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 379 (7th Cir.1983); In re New York Deli, Ltd., 41 B.R. 198 (Bankr.D.Ha.1984).
discussed Cited as authority (rule) Skeen v. Denver Coca-Cola Bottling Co. (In Re Feyline Presents, Inc.)
Bankr.D. Colo. · 1988 · confidence medium
NLRB v. Bildisco & Bildisco, 465 U.S. 513, 532 , 104 S.Ct. 1188, 1199 , 79 L.Ed. 2d 482 (1984); In re Whitcomb & Keller Mortgage Co., 715 F.2d 375, 378 (7th Cir.1983); In re Cochise College Park, Inc., 703 F.2d 1339, 1354 (9th Cir.1983).
discussed Cited as authority (rule) In Re Great Northwest Recreation Center, Inc.
Bankr. D. Mont. · 1987 · confidence medium
Co., Inc., 715 F.2d 375, 380 (7th Gir.1983), furthers the policy underlying the Bankruptcy Code ‘of maximizing the value of the estate for the benefit of all creditors, while preserving certain rights to contracts with the debtor.' In re Kelly Lyn Franchise Co., Inc., 26 B.R. 441, 445 (Bankr.M.D.Tenn.1983).” See also, In re Offices & Serv. of White Plains Plaza, Inc., 56 B.R. 607, 610 (Bankr.S.D.N.Y.1986); In re Westview 74th Street Drug Corp., 59 B.R. 747, 754 (Bankr.S.D.N.Y.1986).
cited Cited as authority (rule) In Re Gamma Fishing Co., Inc.
Bankr. S.D. Cal. · 1987 · confidence medium
In re Harris Management Co., 791 F.2d 1412 , 1414 (9th Cir.1986); In re Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 380 (7th Cir.1983); In re Kelly Lyn Franchise Co., 26 B.R. 441, 445 (Bankr.
discussed Cited as authority (rule) Harris International Telecommunications, Inc. v. Three Star Telecast, Inc. (In Re Three Star Telecast, Inc.)
Bankr. D.P.R. · 1987 · confidence medium
Moody v. Amoco Oil Co., 734 F.2d 1200, 1215 (7th Cir.1984); In re Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 379 (7th Cir.1983); Theatre Holding Corp. v. Mauro, 681 F.2d 102, 105 (2nd Cir.1982); In re Gulfco Investment, Corp., 520 F.2d 741 , 743 (10th Cir.1975).
cited Cited as authority (rule) In Re Beker Industries Corp.
Bankr. S.D.N.Y. · 1986 · confidence medium
Matter of Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 379 (7th Cir.1983); accord Theatre Holding Corp. v. Mauro (In re Theatre Holding Corp.), 681 F.2d 102, 106 (2d Cir.1982).
discussed Cited as authority (rule) In Re Harris Management Company, Inc. Debtor. Bruce Lindsey, as Trustee of Harris Management Company, Inc., Plaintiff v. Department of Labor, an Agency of the United States of America, Defendant v. Itpe-Nmu Welfare Plan and Itpe-Nmu Pension Fund, Intervenors-Appellants (2×)
9th Cir. · 1986 · confidence medium
We find neither rationale supports the ruling. 6 We agree that assumption under section 365 requires the express approval of the court, In re Whitcomb & Keller Mortgage Co., 715 F.2d 375, 380 (7th Cir.1983); In re Kelly Lyn Franchise Co., 26 Bankr. 441, 445 (Bankr.M.D.Tenn.1983); 2 Collier on Bankruptcy p 365.03, at 365-25 (L.
discussed Cited as authority (rule) Lindsey v. Department of Labor (In re Harris Management Co.) (2×)
9th Cir. · 1986 · confidence medium
We agree that assumption under section 365 requires the express approval of the court, In re Whitcomb & Keller Mortgage Co., 715 F.2d 375, 380 (7th Cir.1983); In re Kelly Lyn Franchise Co., 26 Bankr. 441, 445 (Bankr.M.D.Tenn.1983); 2 Collier on Bankruptcy ¶ 365.03, at 365-25 (L.
discussed Cited as authority (rule) Trustees of the Amalgamated Insurance Fund v. McFarlin's, Inc.
2d Cir. · 1986 · confidence medium
Co., Inc., 715 F.2d 375, 380 (7th Cir.1983); In re Kelly Lyn Franchise Co., Inc., 26 B.R. 441, 444-45 (Bankr., M.D.Tenn.1983); In re Marple Publishing Co., Inc., 20 B.R. 933, 935 (Bankr., E.D.Pa.1982); In re Price Chopper Supermarkets, Inc., 19 B.R. 462, 467 (Bankr., S.D.Cal.1982); 2 L.
discussed Cited as authority (rule) In Re Bon Ton Restaurant & Pastry Shop, Inc.
Bankr. N.D. Ill. · 1985 · confidence medium
Co., Inc., 715 F.2d 375, 380 (7th Cir.1983), furthers the policy underlying the Bankruptcy Code “of maximizing the value of the estate for the benefit of all creditors, while preserving certain rights of parties to contracts with the debtor.” In re Kelly Lyn Franchise Co., Inc., 26 B.R. 441, 445 (Bankr.M.D.Tenn.1983).
cited Cited as authority (rule) In Re Bon Ton Restaurant and Pastry Shop, Inc.
Bankr. N.D. Ill. · 1985 · confidence medium
Co., Inc., 715 F.2d 375, 380 (7th Cir.1983).
discussed Cited as authority (rule) Gerald W. Moody, and Jermoo's Incorporated, Debtors-In-Possession, Plaintiffs v. Amoco Oil Company (2×)
7th Cir. · 1984 · confidence medium
This procedure insures that the debtor is not in the precarious position of having assumed a contract relying on confirmation of a particular plan, only to find the plan to have been rejected. 85 Data-Link Systems, Inc. v. Whitcomb & Keller Mortgage Co., 715 F.2d 375, 378 (7th Cir.1983) (quoting unpublished bankruptcy order of April 8, 1981). 86 Section 108(b) 14 provides in part that where an agreement fixes a time period in which the debtor may cure a default, the debtor may cure before the later of the expiration of the time period or sixty days after the filing of the petition.
discussed Cited as authority (rule) In Re Sweetwater
Bankr. D. Utah · 1984 · confidence medium
Matter of Whitcomb & Keller Mortgage Co., Inc., 715 F.2d 375, 378 (7th Cir.1983); Theatre Holding Corp. v. Mauro, 681 F.2d 102, 105 (2d Cir.1982); Matter of Gulfco Investment Corp., 520 F.2d 741 , 743 (10th Cir.1975) (Chapter X reorganization proceeding).
discussed Cited "see" CCT Communications, Inc. v. Zone Telecom, Inc.
Conn. · 2017 · signal: see · confidence high
See In re Whitcomb & Keller Mortgage Co., 715 F.2d 375 , 378 (7th Cir. 1983) (noting that reorganization trustee "is entitled to a reasonable time to make a careful and informed evaluation as to possible burdens and benefits of an executory contract" and that court has authority to preserve status quo until such decision is made [internal quotation marks omitted] ).
discussed Cited "see" In Re UAL Corp.
7th Cir. · 2011 · signal: see · confidence high
(In re JZ L.L.C.), 371 B.R. 412, 424-25 (9th Cir.BAP 2007) (recognizing "ride-through" option for executory contracts); see generally Data-Link Systems, Inc. v. Whitcomb & Keller Mortgage Co. (In re Whitcomb & Keller Mortgage Co.), 715 F.2d 375, 379 (7th Cir.1983) (holding that bankruptcy court did not abuse discretion in denying request to require debtor to assume or reject executory contract immediately, before confirmation of plan of reorganization). *321 Under' similar reasoning, some courts have held that the Code permits the bankruptcy court to approve a reorganization plan that provides…
discussed Cited "see" ReGen Capital I, Inc. v. UAL Corp. (In Re UAL Corp.)
7th Cir. · 2011 · signal: see · confidence high
(In re JZ L.L.C.), 371 B.R. 412, 424-25 (9th Cir.BAP 2007) (recognizing “ride-through” option for executory contracts); see generally Data-Link Systems, Inc. v. Whitcomb & Keller Mortgage Co. (In re Whitcomb & Keller Mortgage Co.), 715 F.2d 375, 379 (7th Cir.1983) (holding that bankruptcy court did not abuse discretion in denying request to require debtor to assume or reject executory contract immediately, before confirmation of plan of reorganization). *321 Under similar reasoning, some courts have held that the Code permits the bankruptcy court to approve a reorganization plan that provi…
Retrieving the full opinion text from the archive…
In the Matter of WHITCOMB & KELLER MORTGAGE CO., INC., Debtor. DATA-LINK SYSTEMS, INC., Plaintiff-Appellant,
v.
WHITCOMB & KELLER MORTGAGE CO., INC., Defendant-Appellee
82-2947.
Court of Appeals for the Seventh Circuit.
Aug 26, 1983.
715 F.2d 375
Richard D. Bonewitz, Hammerschmidt & Bonewitz, South Bend, Ind., for Data-Link Systems., Jeffery A. Johnson, May, Oberfell, Hell-ing, Lorber & Campiti, South Bend, Ind., for defendant-appellee.
Pell, Eschbach, Jameson.
Cited by 84 opinions  |  Published
JAMESON, District Judge.

This is an appeal from an order of the district court affirming a decision of the bankruptcy court allowing the debtor, Whitcomb & Keller Mortgage Co., Inc., Ap-pellee, to reject an executory contract with Data-Link Systems, Inc., Appellant, and classifying Data-Link as a general unsecured creditor in the Whitcomb & Keller bankruptcy proceeding for the sum of $12,-954.63. We affirm.

I. Factual and Procedural Background

Whitcomb & Keller, a mortgage banker whose business included servicing mortgage accounts for investors, executed an executo-ry contract with Data-Link, whereby, for a fee, Data-Link was to provide computer services to update and maintain Whitcomb & Keller’s customer accounts. The contract provided that upon termination of the contract, Data-Link would return all master files and other occupational data relating to Whitcomb & Keller upon payment in full of any outstanding balance.

On October 27, 1980, Whitcomb & Keller filed for relief under Chapter 11 of the Bankruptcy Code, 11 U.S.C. § 1101 et seq. The bankruptcy court approved Whitcomb & Keller as a debtor in possession. [1] At the[*377] time Whitcomb & Keller filed its bankruptcy petition, it owed Data-Link $12,954.63 for computer services previously rendered. Data-Link’s claim for that amount was listed in the bankruptcy schedule as a general unsecured claim. Data-Link continued providing computer services, and Whitcomb & Keller paid for all services provided during the administration of the estate.

During the course of the bankruptcy, Whitcomb & Keller determined that it should sell its mortgage servicing contract assets. On February 26, 1981, the bankruptcy court found the bids of Milliken Mortgage Company and Unity Savings Association to be the best for the sale of the assets. As the district court found, [2] on March 4,1981, Data-Link discontinued computer services to Whitcomb & Keller, paralyzing it, and precipitated the filing of an application for a temporary restraining order and preliminary injunction. Over Data-Link’s objections, the bankruptcy court entered an order enjoining Data-Link from terminating the computer services, and the services were resumed.

On March 5, 1981, Data-Link filed its answer which included a counterclaim requesting the bankruptcy court either (1) to declare that Whitcomb & Keller, by its application requesting the court to enforce the executory contract and by its continued receipt of the benefits of the executory contract, had assumed the executory contract, or (2) to require Whitcomb & Keller to decide whether to assume or reject the ex-ecutory contract within a specified period of time before the confirmation of the plan. After a hearing on March 9,1981, the bankruptcy court took the matter under advisement and continued the restraining order in effect.

On March 12, 1981, Unity Savings informed the bankruptcy court that Data-Link refused to give either Whitcomb & Keller or Unity Savings essential information stored in the master data base, thereby preventing Unity Savings from purchasing the servicing contract assets. Data-Link contended that the restraining order did not require it to provide Unity Savings with test tapes of information stored in the master data base but only to provide computer services to Whitcomb & Keller. Following a hearing on March 16, 1981, the bankruptcy court directed Data-Link to cooperate and turn over test tapes to expedite the sale of Whitcomb & Keller’s mortgage servicing assets. The parties stipulated that any right, lien or other interest Data-Link might have would attach to proceeds of the sale of Whitcomb & Keller’s assets. Whit-comb & Keller paid Data-Link in full for all charges relating to the preparation of the master data base.

On April 8, 1981, the bankruptcy court found that Whitcomb & Keller had not assumed the executory contract. The court found further that Whitcomb & Keller had remained current on its post-petition debts and that Data-Link was adequately protected, in that any right, lien or other interest that it might have would attach to the proceeds of the sale of Whitcomb & Keller’s assets. Accordingly, the bankruptcy court denied Data-Link’s request to require Whit-comb & Keller to assume or reject the exec-utory contract prior to the confirmation of the plan.

Also on April 8,1981, Whitcomb & Keller requested authority to reject the executory contract. Data-Link objected, and the matter was set for trial. On April 24 the court confirmed the second amended plan of reorganization. Data-Link filed a proof of claim on April 30, asserting priority for the pre-petition claim of $12,954.63.

On July 10, 1981, a trial was held in bankruptcy court on Whitcomb & Keller’s request for authority to reject the executo-ry contract. By order dated April 15, 1982, the court found that Whitcomb & Keller had not assumed the executory contract and[*378] that the language of the contract did not give rise to an equitable lien or warehouseman’s lien on the information stored in Data-Link’s computer. Accordingly, the bankruptcy court concluded that (1) Whit-comb & Keller was entitled to reject the executory contract, and (2) Data-Link’s pre-petition debt of $12,954.63 incurred under the executory contract was an unsecured claim. On appeal the district court affirmed the decision of the bankruptcy court.

II.Contentions on Appeal

Data-Link contends that:

(1) neither the debtor in possession nor the bankruptcy court had authority to enforce the executory contract unless the contract was assumed by the debtor;

(2) because of the essential nature of the services provided under the contract, the bankruptcy court should have specified a period of time within which Whitcomb & Keller was required to decide whether to assume or reject the contract;

(3) Whitcomb & Keller continued receiving benefits from the executory contract and should have been required to assume its burdens; and

(4) Whitcomb & Keller’s request for an order prohibiting Data-Link from terminating computer services and the bankruptcy court’s restraining orders constituted an assumption by Whitcomb & Keller of the ex-ecutory contract.

III.Authority to Enforce Executory Contract Pending Acceptance or Rejection

Acceptance and rejection of executo-ry contracts are governed by Section 365 of the Bankruptcy Code. Title 11 U.S.C. § 365(d)(2) provides:

In a case under Chapter 9,11 or 13 of this title, the trustee may assume or reject an executory contract or unexpired lease of the debtor at any time before the confirmation of a plan, but the court, on request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. [3]

In In re American National Trust, 426 F.2d 1059, 1064 (7 Cir.1970), this court held that a trustee in a reorganization proceeding “is entitled to a reasonable time to make a careful and informed evaluation as to possible burdens and benefits of an exec-utory contract,” quoting from 6 Collier on Bankruptcy (14th Ed.) 576-80.

The executory contract between Data-Link and Whitcomb & Keller was in effect on October 27, 1980, when Whitcomb & Keller filed its bankruptcy petition. The contract remained in effect until Whitcomb & Keller made its decision to assume or reject the contract. Before Whitcomb & Keller made its decision, however, Data-Link ceased providing essential computer services. Whitcomb & Keller then applied for the restraining order, as it had a right to do. Similarly, the bankruptcy court had the authority to preserve the status quo until Whitcomb & Keller made its decision. [4] The district court held that the bankruptcy court did not err in issuing the restraining order. We agree.

IV.Requiring Debtors in Possession to Assume or Reject Executory Contract

Data-Link contends that because of the essential nature of the service it provided under the contract, the bankruptcy court,[*379] pursuant to Section 365 of the Bankruptcy Code, 11 U.S.C. § 365(d)(2), should have specified a period of time within which Whitcomb & Keller was required to decide whether to assume or reject the executory contract. The parties had, of course, stipulated that the computer services were essential and that the information stored in the computer included information essential to the sale of Whitcomb & Keller’s accounts. Data-Link argues that time for further inquiry into the benefits and burdens of the contract was not needed.

Data-Link interprets the purpose of § 365(d) too narrowly. It is not enough that the trustee or debtor in possession recognize that the services provided under the contract are essential. Rather, § 365(d) allows the trustee or debtor in possession a reasonable time within which to determine whether adoption or rejection of the execu-tory contract would be beneficial to an effective reorganization. In re American National Trust, supra, 426 F.2d at 1064 (interpreting 11 U.S.C. § 516(1) (repealed 1979), predecessor to § 365).

The bankruptcy court addressed this issue in its order of April 8, 1981. After discussing the purpose of allowing the trustee a reasonable time to make its decision, the court noted that Data-Link was adequately protected because (1) Whitcomb & Keller had paid for all services received during the administration of its estate, and (2) the parties had stipulated that any right, lien or other interest that Data-Link might have would attach to the proceeds of the sale of Whitcomb & Keller’s assets. Accordingly, the court exercised its discretion under § 365(d) in denying Data-Link’s request to require Whitcomb & Keller “to assume or reject the contract forthwith.” We find no abuse of the bankruptcy court’s discretion.

V. Receipt of Benefits and Assumption of Burdens

Data-Link next contends that a finding that Keller assumed the contract is necessary to avoid the inequitable result of allowing Whitcomb & Keller to derive the benefits of the contract without assuming its burdens.

In the first place, it may be noted that general principles governing contractual benefits and burdens do not always apply in the bankruptcy context. The purpose of the Bankruptcy Code is to “suspend the normal operation of rights and obligations between the debtor and his creditors.” Fontainebleau Hotel Corp. v. Simon, 508 F.2d 1056, 1059 (5 Cir.1975). Moreover, successful reorganization under Chapter 11 depends on relieving the debtor of burdensome contracts and pre-petition debts so that “additional cash flow thus freed is used to meet current operating expenses.” H.R. Rep. No. 595, 95th Cong., 1st Sess. 221 (1977), reprinted in 1978 U.S.Code Cong. & Ad.News 5787, 5963, 6181. The post-petition services provided by Data-Link were operating expenses which Whitcomb & Keller paid in full. But merely providing such services did not alter Data-Link’s position as a general unsecured creditor on its pre-petition claim. U.S. Financial, Inc. v. Pacific Telephone & Telegraph, 594 F.2d 1275, 1279 (9 Cir.1979); In re Kassuba, 396 F.Supp. 324, 326 (N.D.Ill.1975).

The cases upon which appellant relies are factually distinguishable. Here it is undisputed that Whitcomb & Keller paid in full for all services rendered during the administration of the estate, including the preparation of the data base tape. The only alleged breach of the executory contract relates to the indebtedness owed by Whitcomb & Keller when the petition was filed. Data-Link suffered no harm nor prejudice through the continued utilization of its computer services. Rather it presumably earned a profit from the continued use. [5] We agree with the district court that[*380] Whitcomb & Keller’s utilization of the computer services during the administration of the estate did not support a finding that Whitcomb & Keller assumed the contract or that Data-Link was entitled to a priority.

VI. Requirements for Assumption of Executory Contracts

Finally, Data-Link contends that Whitcomb & Keller’s “application for the enforcement of this essential executory contract and the Bankruptcy Court’s mandatory order thereon (that Data-Link must perform) constituted an assumption with Court approval.”

Under § 365(a) the trustee or debtor in possession, “subject to the court’s approval, may assume or reject any executory contract....” 11 U.S.C. § 365(a) (emphasis added). Interpreting similar language [6] in In re American National Trust, supra, 426 F.2d at 1064, this court declared: “ ‘Assumption or adoption of the contract can only be effected through an express order of the judge.’ ” (quoting 6 Collier on Bankruptcy 576-80 (14th ed.)). No such order issued in the present case. Neither the bankruptcy court nor Whitcomb & Keller exhibited any intention of assuming the contract when the court enjoined Data-Link’s termination of services. [7] We will not infer such intention. Instead, we find the order was directed solely toward maintaining the status quo — a permissible purpose well within the bankruptcy court’s power, as we have noted.

VII. Conclusion

We find no abuse of the bankruptcy court’s discretion. We agree with the bankruptcy court and the district court that (1) Whitcomb & Keller did not assume the ex-ecutory contract; but rather (2) was entitled to and did reject the contract; and (3) Data-Link’s pre-petition claim of $12,954.63 is an unsecured claim.

Affirmed.

1

. A debtor in possession is essentially the trustee in a reorganization proceeding. Under 11 U.S.C. § 1107(a), a debtor in possession has[*377] the rights and powers and performs the functions of a trustee.

2

. In a well considered opinion, the district court set forth in detail the factual background and proceedings in the bankruptcy court. We have followed the opinion of the district court in outlining the facts and proceedings.

3

. The policy behind § 365(d)(2) was summarized by the bankruptcy court in its April 8, 1981, order as follows:

Since a debtor is in limbo until confirmation of a plan, it is understandably difficult to commit itself to assuming or rejecting a contract much before the time for confirmation of a plan. Thus, the code allows for the debtor to provide for assumption or rejection of the executory contracts in its plan. This procedure insures that the debtor is not in the precarious position of having assumed a contract relying on confirmation of a particular plan, only to find the plan to have been rejected.
4

. The Bankruptcy Code provides a sufficient legal basis for a bankruptcy court to issue an injunction or restraining order in appropriate situations. Section 105(a) empowers a bankruptcy court to issue any order that is necessary or appropriate to carry out the provisions of the Code, 11 U.S.C. § 105(a) (1979).

5

. As the district court noted, Whitcomb & Keller in effect “assumed the burdens as it received the benefits during the administration of the estate. If Whitcomb & Keller had continued to receive the services of Data-Link during the administration of the estate and not paid for them, the law clearly states that that indebtedness would be entitled to priority status.[*380] See, e.g., Matter of Steelship Corp., 576 F.2d 128, 132 (8 Cir.1978). However, that is not the case here.”

6

. 11 U.S.C. § 516(1) (repealed 1979), provided: “upon the approval of a petition, the judge may ... (1) permit the rejection of executory contracts of the debtor....”

7

. As the district court noted:

The fact that Whitcomb & Keller utilized the computer services of Data-Link during the administration of its Chapter 11 estate and obtained an injunction from the Bankruptcy Court in order to do so does not support a finding that Whitcomb & Keller assumed the contract. Whitcomb & Keller was entitled to a reasonable time to decide whether to assume or reject the contract and the contract remained in effect until it was rejected. The injunction therefore was necessary in order to give Whitcomb & Keller the time needed to make its decision.