U.S. Code » Title 11 » Chapter CHAPTER 12— ADJUSTMENT OF DEBTS OF A FAMILY FARMER OR FISHERMAN WITH REGULAR ANNUAL INCOME › Subchapter SUBCHAPTER I— OFFICERS, ADMINISTRATION, AND THE ESTATE

11 U.S.C. § 1204

Removal of debtor as debtor in possession

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(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.(Added and amended Pub. L. 99–554, title II, § 255, title III, § 302(f), Oct. 27, 1986, 100 Stat. 3107, 3124; Pub. L. 103–65, § 1, Aug. 6, 1993, 107 Stat. 311; Pub. L. 105–277, div. C, title I, § 149(a), Oct. 21, 1998, 112 Stat. 2681–610; Pub. L. 106–5, § 1(1), (2), Mar. 30, 1999, 113 Stat. 9; Pub. L. 106–70, § 1, Oct. 9, 1999, 113 Stat. 1031; Pub. L. 107–8, § 1, May 11, 2001, 115 Stat. 10; Pub. L. 107–17, § 1, June 26, 2001, 115 Stat. 151; Pub. L. 107–170, § 1, May 7, 2002, 116 Stat. 133; Pub. L. 107–171, title X, § 10814(a), May 13, 2002, 116 Stat. 532; Pub. L. 107–377, § 2(a), Dec. 19, 2002, 116 Stat. 3115; Pub. L. 108–73, § 2(a), Aug. 15, 2003, 117 Stat. 891; Pub. L. 108–369, § 2(a), Oct. 25, 2004, 118 Stat. 1749; Pub. L. 109–8, title X, § 1001(a)(1), (c), Apr. 20, 2005, 119 Stat. 185, 186.)Editorial NotesCodification

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 SubsidiariesEffective Dates

Permanent 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 dates 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.

Notes of Decisions
Cited in 9 cases, 1988–2008 · leading case: Dawson v. Thomas (In Re Dawson), 411 B.R. 1 (D.D.C. 2008).
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Dawson v. Thomas (In Re Dawson), 411 B.R. 1 (D.D.C. 2008). “11 U.S.C. § 1204 (a). In both chapter 11 and 12, a debtor in possession has, with exceptions of no relevance here, "all the rights .”
York v. Bank of Am., N.A. (In Re York), 291 B.R. 806 (Bankr. E.D. Tenn. 2003). “11 U.S.C. § 1204 . The limitations, however, leave the Chapter 12 debtor with the right to use property of the bankruptcy estate.”
Bailey v. Household Fin. Corp. (In Re Bailey), 306 B.R. 391 (D.D.C. 2004). “However, the debtors, the Hills, were by reason of 11 U.S.C. § 1204 (a) debtors-in-possession, and by reason of 11 U.”
In Re Buckingham, 197 B.R. 97 (Bankr. D. Mont. 1996). · cites it 2× “1991), unless the creditors could meet the difficult standard for their removal as debtors-in-possession pursuant to 11 U.S.C. § 1204 (a). In re Myers, 12 Mont.”
In Re Burke, 147 B.R. 787 (Bankr. N.D. Okla 1992). “After hearing the evidence, the Court removed the Burkes as debtors-in-possession pursuant to 11 U.S.C. § 1204 (a). The Burkes’ removal was announced by the Court “from the bench” and was effective immediately (though a written order was not filed and entered until March 14,…”
In Re Sfw, Inc., 83 B.R. 27 (Bankr. S.D. Cal. 1988). “An in-depth discussion of 11 U.S.C. §§ 1204 , 1205, 1206, 1224, 1225 and 1227 appears in the Conference Report, which thoroughly discusses the impact of these modified sections.”
In Re Roesner, 153 B.R. 328 (Bankr. D. Kan. 1993). “11 U.S.C. § 1204 (a); 11 U.S.C. § 1207 (b).”
In Re Foos, 121 B.R. 778 (Bankr. S.D. Ohio 1990). “(b) Except as provided in section 1204 [ 11 U.S.C.S. § 1204 ], a confirmed plan, or an order confirming a plan, the debtor shall remain in possession of all property of the estate.”
In Re Erickson, 183 B.R. 189 (Bankr. D. Minn. 1995). “§ 1202 (b)(5), after removal of the debtor from possession pursuant to 11 U.S.C. § 1204 . This, of course, is not what the Movant proposes, and for an obvious reason: the deceased Debtor’s family members want to retain the ownership and control of the business within their…”
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