U.S. Code » Title 11 » Chapter CHAPTER 11— REORGANIZATION › Subchapter SUBCHAPTER V— SMALL BUSINESS DEBTOR REORGANIZATION

11 U.S.C. § 1185

Removal of debtor in possession

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(a)In General.—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 date of commencement of the case, or for failure to perform the obligations of the debtor under a plan confirmed under this subchapter.(b)Reinstatement.—On request of a party in interest, and after notice and a hearing, the court may reinstate the debtor in possession.(Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1080.)Statutory Notes and Related SubsidiariesEffective Date

Section effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as an Effective Date of 2019 Amendment note under section 101 of this title.

Notes of Decisions
Cited in 11 cases (11 in the last 5 years), 2021–2025 · leading case: Dusan Pittner, No. 21-11009 (Bankr. D. Mass. Feb. 4, 2022).
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Dusan Pittner, No. 21-11009 (Bankr. D. Mass. Feb. 4, 2022). · cites it 3× “After a video hearing, the Court, finding cause to convert or dismiss, but also finding that removal of the Debtor from possession pursuant to 11 U.S.C. § 1185 (a) is in the best interest of creditors and the estate, shall remove the Debtor from possession based on the Debtor’s…”
Moore & Moore Trucking, LLC, No. 20-10925 (Bankr. E.D. La. Jan. 12, 2022). · cites it 2× “115, 166 & 172]; and the opposition to that motion, as supplemented, filed by the Debtor, [ECF Docs.”
Neosho Concrete Prods. Co., No. 20-30314 (Bankr. W.D. Mo. May 6, 2021). · cites it 2× “Alternatively, the UST argues cause exists to remove Neosho as debtor in possession under 11 U.S.C. § 1185 because Neosho allegedly made preferential transfers to an insider during the preference period.”
Cinemex Holdings USA, Inc., No. 25-17559 (Bankr. S.D. Fla. Aug. 28, 2025). · cites it 2× “Having considered the statutory framework of Subchapter V, the Court finds that guidance comes from the provisions relating to the expansion of a Subchapter V trustee’s duties pursuant to section 1183(b)(2) and the provisions addressing the extreme circumstances of removal of a…”
In Re: Coeptis Equity Fund LLC v. Janina Hoskins, No. 23-60001 (9th Cir. Mar. 15, 2024). “Coeptis contends that the bankruptcy court abused its discretion when it issued the Removal Order because 11 U.S.C. § 1185 (a) provides that a debtor may be removed as DIP upon the motion of a party in interest, and the bankruptcy court removed Coeptis as DIP on its own motion.”
Green v. Nosek, No. 0:22-cv-00972 (D. Minn. Nov. 10, 2022). “] After possession of the properties was turned over to Schuldner, the United States Trustee filed a motion seeking to again remove the debtor from possession of the property pursuant to 11 U.S.C. § 1185 and appoint the subchapter 7 trustee to assume the debtor’s duties.”
California Palms Addiction Recovery Campus, Inc. v. United States Tr., No. 4:22-cv-00812 (N.D. Ohio Mar. 27, 2023). “A week after Appellants filed for bankruptcy, Pender Capital “moved for automatic relief from the automatic stay to allow it to evict [CPARC]” and sought either an “appointment of a trustee under 11 U.S.C. § 1185 (a) or conversion of Appellants’ case to one under Chapter 7, to…”
Nat'l Small Bus. All., Inc., No. 21-00031 (Bankr. D.D.C. June 29, 2022). “See 11 U.S.C. § 1185 (“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…”
ComedyMX LLC, No. 22-11181 (Bankr. D. Del. Dec. 16, 2022). “Section 1184 makes plain that a debtor in possession in a subchapter V case is required to “perform [the] function and duties … 23 11 U.S.C. § 1185 (a). 24 11 U.S.C. § 102 (3).”
Corinthian Commc'ns, Inc., No. 22-10425 (Bankr. S.D.N.Y. Aug. 3, 2022). “(the “Debtor”), as the debtor in possession pursuant to 11 U.S.C. § 1185 (a). The Subchapter V Trustee in this Subchapter V Chapter 11 case, Eric Huebscher, filed a declaration in support of the Motion.”
USA Cricket, No. 25-16381 (Bankr. D. Colo. Dec. 15, 2025). “30 11 U.S.C. § 1185 (a). 31 11 U.S.C. §§ 1183 (b)(5) & (b)(7).”
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