U.S. Code » Title 11 » Chapter CHAPTER 3— CASE ADMINISTRATION › Subchapter SUBCHAPTER II— OFFICERS

11 U.S.C. § 324

Removal of trustee or examiner

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(a) The court, after notice and a hearing, may remove a trustee, other than the United States trustee, or an examiner, for cause.(b) Whenever the court removes a trustee or examiner under subsection (a) in a case under this title, such trustee or examiner shall thereby be removed in all other cases under this title in which such trustee or examiner is then serving unless the court orders otherwise.(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2562; Pub. L. 99–554, title II, § 208, Oct. 27, 1986, 100 Stat. 3098.)Historical and Revision Notessenate report no. 95–989

This section permits the court, after notice and a hearing, to remove a trustee for cause.

Editorial NotesAmendments

1986—Pub. L. 99–554 amended section generally, designating existing provisions as subsec. (a), substituting “a trustee, other than the United States trustee, or an examiner” for “a trustee or an examiner”, and adding subsec. (b).

Statutory Notes and Related SubsidiariesEffective Date of 1986 Amendment

Effective date and applicability of amendment by Pub. L. 99–554 dependent upon the judicial district involved, see section 302(d), (e) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.

Notes of Decisions
Cited in 164 cases (18 in the last 5 years), 1982–2026 · leading case: Morgan v. Goldman (In Re Morgan), 375 B.R. 838 (8th Cir. BAP 2007).
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Morgan v. Goldman (In Re Morgan), 375 B.R. 838 (8th Cir. BAP 2007). · cites it 8× “§ 105 (a); 11 U.S.C. § 324 ; 11 U.S.C. § 1302 , and 28 U.”
AFI Holding, Inc. v. Brown, 530 F.3d 832 (9th Cir. 2008). · cites it 2× “Dye appeals from a decision of the United States Bankruptcy Appellate Panel (“BAP”) for the Ninth Circuit affirming the order of the bankruptcy judge removing her as Trustee for cause pursuant to 11 U.S.C. § 324 in this Chapter 7 proceeding.”
In Re Soundview Elite Ltd. (Fletcher v. Ball), 646 F. App'x 1 (2d Cir. 2016). · cites it 2× “A bankruptcy court’s denial of a motion to remove the trustee under 11 U.S.C. § 324 (a) is reviewed for abuse of discretion.”
Fletcher Int'l, Ltd. v. Davis (In Re Fletcher Int'l, Ltd.), 661 F. App'x 124 (2d Cir. 2016). · cites it 2× “Under 11 U.S.C. § 324 (a), the bankruptcy court may, “remove a trustee .”
Yosef A. Maiman & Merhav (M.N.F.) Ltd. v. Spizz (In re Ampal-Am. Israel Corp.), 554 B.R. 604 (Bankr. S.D.N.Y. 2016). · cites it 2× “While Appellants press that the Trustee’s joining TKD violates the letter of the Discovery Order, the Court concurs with the Bankruptcy Court that there is no danger of disclosure of this sensitive information to Shapira — particularly given that TKD’s relationship with Shapira…”
Reed v. Cooper (In Re Cooper), 405 B.R. 801 (Bankr. N.D. Tex. 2009). · cites it 2× “11 U.S.C. § 324 . But, it would seem to be, generally, an unwise idea to allow a creditor to usurp the trustee’s role as a representative of the estate ( 11 U.”
Ritchie Special Credit Investments, Ltd. v. United States Tr., 620 F.3d 847 (8th Cir. 2010). · cites it 2× “Although Ritchie can seek Kelley’s removal for cause under 11 U.S.C. § 324 , Ritchie would be unable to obtain the relief it seeks' — ’the appointment of PGW’s own trustee at the outset of the bankruptcy proceedings — in the absence of our immediate review.”
In Re Dinubilo, 177 B.R. 932 (E.D. Cal. 1993). · cites it 3× “On February 14, 1991, OUST filed a motion to remove the Case Trustee under 11 U.S.C. § 324 (a) 2 for alleged nonperformance of his duties by failure to expeditiously pursue the debtor’s improper transfers of real property; failure to investigate the presence of equity in real…”
United States Tr. v. Repp (In Re Sheehan), 185 B.R. 819 (Bankr. D. Ariz. 1995). · cites it 4× “Trustee is seeking to have Repp removed as Trustee in this case pursuant to 11 U.S.C. § 324 (a). In the event Repp is removed as Trustee under that section, it will have the effect of removing her as Trustee in all cases which she is still serving as the Chapter 7 Trustee.”
In Re: Craig Piazza, Craig Piazza v. Nueterra Healthcare Physical Therapy, LLC, 719 F.3d 1253 (11th Cir. 2013). “2008) (holding that 11 U.S.C. § 324 authorizes bankruptcy courts to remove a trustee sua sponte because that statute permits dismissal "for cause” and "does not require that a 'party in interest’ request the removal”).”
In re BH & P Inc., 949 F.2d 1300 (3d Cir. 1991). · cites it 4× “§ 701 (a)(1) and was, therefore, removable for “cause” pursuant to 11 U.S.C. § 324 . The court held that RGZ and the other professionals assisting Maggio should also be disqualified in the Herman and Berkow cases, reasoning that these professionals also failed to qualify as…”
Mediofactoring v. McDermott (In Re Connolly North Am., LLC), 802 F.3d 810 (6th Cir. 2015). · cites it 2× “See 11 U.S.C. § 324 (providing the bankruptcy court with authority to remove an acting trustee).”
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11 U.S.C. § 324(a): 1 case
United Tax Grp., LLC (Bankr. D. Del. 2020).
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