U.S. Code » Title 11 » Chapter CHAPTER 11— REORGANIZATION › Subchapter SUBCHAPTER I— OFFICERS AND ADMINISTRATION

11 U.S.C. § 1107

Rights, powers, and duties of debtor in possession

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(a) Subject to any limitations on a trustee serving in a case under this chapter, and to such limitations or conditions as the court prescribes, a debtor in possession shall have all the rights, other than the right to compensation under section 330 of this title, and powers, and shall perform all the functions and duties, except the duties specified in sections 1106(a)(2), (3), and (4) of this title, of a trustee serving in a case under this chapter.(b) Notwithstanding section 327(a) of this title, a person is not disqualified for employment under section 327 of this title by a debtor in possession solely because of such person’s employment by or representation of the debtor before the commencement of the case.(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2628; Pub. L. 98–353, title III, § 503, July 10, 1984, 98 Stat. 384.)Historical and Revision Noteslegislative statements

The House amendment adopts section 1107(b) of the Senate amendment which clarifies a point not covered by the House bill.

senate report no. 95–989

This section places a debtor in possession in the shoes of a trustee in every way. The debtor is given the rights and powers of a chapter 11 trustee. He is required to perform the functions and duties of a chapter 11 trustee (except the investigative duties). He is also subject to any limitations on a chapter 11 trustee, and to such other limitations and conditions as the court prescribes cf. Wolf v. Weinstein, 372 U.S. 633, 649–650 (1963).

Editorial NotesAmendments

1984—Subsec. (a). Pub. L. 98–353 substituted “on a trustee serving in a case” for “on a trustee”.

Statutory Notes and Related SubsidiariesEffective Date of 1984 Amendment

Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.

Notes of Decisions
Cited in 2,182 cases (109 in the last 5 years), 1979–2026 · leading case: ASARCO LLC v. Americas Mining Corp., 396 B.R. 278 (S.D. Tex. 2008).
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ASARCO LLC v. Americas Mining Corp., 396 B.R. 278 (S.D. Tex. 2008). · cites it 4× “Fifth Defense — Failure To Join Indispensable Parties AMC next claims that Plaintiffs have failed to join indispensable parties.”
Lamie v. United States Tr., 540 U.S. 526 (2004). “Three months into the Chapter 11 reorganization, the United States Trustee (Government) filed a motion to convert the action into a Chapter 7 liquidation proceeding.”
Richmond Leasing Co. v. Capital Bank, N.A., 762 F.2d 1303 (5th Cir. 1985). · cites it 3× “11 U.S.C. §§ 1107 and 1108, taken together, authorize a debtor in possession to operate the business of the debtor.”
Willie Love v. Tyson Foods, Inc., 677 F.3d 258 (5th Cir. 2012). · cites it 2× “Under [NW’s] Plan of Reorganization, all of the estate’s assets are to be reduced to cash by NW and distributed to argument because he made it only after Tyson brought the nondisclosure to light. This will be the case every time a debtor inadvertently fails to disclose until…”
G-I Holdings, Inc. v. Those Parties Listed on Exhibit a (In Re G-I Holdings, Inc.), 313 B.R. 612 (Bankr. D.N.J. 2004). · cites it 3× “See 11 U.S.C. § 1107 (a)(West 2004); see also 11 U.”
In Re Howard's Appliance Corp., Debtor. Sanyo Elec., Inc. v. Howard's Appliance Corp., 874 F.2d 88 (2d Cir. 1989). · cites it 3× “Approximately six months after it began to warehouse the air conditioners in New Jersey, Howard filed a voluntary Chapter 11 petition with the Bankruptcy Court in the Eastern District of New York; Howard continued thereafter in business as a debt- or-in-possession, see 11 U.S.C.…”
Bankr. L. Rep. P 70,524 in Re Cloyd W. Devers & Barbara Devers, Debtors. Cloyd W. Devers & Barbara Devers v. Bank of Sheridan, Montana, 759 F.2d 751 (9th Cir. 1985). · cites it 2× “1 They became debtors-in-possession of their hog breeding facility and continued the operation, pursuant to 11 U.S.C. §§ 1107 , 1108. In April 1981, the Debtors had borrowed $94,802 from the Bank of Sheridan, Montana (“Creditor”), and had pledged their livestock, ranch equipment…”
United States Tr. v. First Jersey Sec., Inc., 180 F.3d 504 (3rd Cir. 1999). · cites it 3× “§ 327 (a); 11 U.S.C. § 1107 . In order for counsel to be retained, “counsel must ‘not hold or represent an interest adverse to the estate’ and must be a ‘disinterested person.”
Indian Harbor Ins. v. Clifford Zucker, 860 F.3d 373 (6th Cir. 2017). · cites it 4× “11 U.S.C. § 1107 (a). But there is one revealing exception: The debtor in possession need not investigate the debtor’s financial condition or any improper conduct because “the debtor cannot be expected to inform on itself.”
In Re Herberman, 122 B.R. 273 (Bankr. W.D. Tex. 1990). · cites it 4× “at 845 ; 11 U.S.C. § 1107 . 8 The debtor first submits all of his property to the newly-created estate, then assumes the role of trustee over the management and utilization of those assets.”
In the Matter of Triangle Chemicals, Inc., Debtor. Darryl Fanelli v. Nelson T. Hensley, Tr., 697 F.2d 1280 (5th Cir. 1983). · cites it 2× “In assuming that section 327 of the new Code did not statutorily require prior court approval for appointment of an attorney employed by other than the trustee, debt- or’s attorney Fanelli overlooked section 1107(a) of the new Code, 11 U.S.C. § 1107 (a), which provides that a…”
In Re: Pillowtex, Inc. Patricia A. Staiano, the United States Tr., 304 F.3d 246 (3rd Cir. 2002). · cites it 2× “See 11 U.S.C. § 1107 (b) (“[A] person is not disqualified for employment under section 327 of this title by a debtor in possession solely because of such person’s employment by or representation of the debtor before the commencement of the case”).”
Show all 2,182 citing cases →
— 11 U.S.C. § 1107(a) — 7 cases
Ice Cream Liquidation, Inc. v. Calip Dairies, Inc. (In Re Ice Cream Liquidation, Inc.), 319 B.R. 324 (Bankr. D. Conn. 2005).
In Re Worldcom, Inc., 401 B.R. 637 (Bankr. S.D.N.Y. 2009).
AG New Mexico v. Borges (In re Borges), 510 B.R. 306 (10th Cir. BAP 2014).
In re Mission Marine Assocs., Inc., 633 F.2d 678 (3rd Cir. 1980).
Highland Capital Mgmt., L.P. (Bankr. N.D. Tex. 2021).
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