11 U.S.C. § 721
Authorization to operate business
The court may authorize the trustee to operate the business of the debtor for a limited period, if such operation is in the best interest of the estate and consistent with the orderly liquidation of the estate.
Notes of Decisions
Cited in 105
cases (3 in the last 5 years), 1940–2026 · leading case: In Re Saturley, 131 B.R. 509 (Bankr. D. Me. 1991).
In Re Saturley, 131 B.R. 509 (Bankr. D. Me. 1991). “§ 363 (c) generally permits ordinary course transactions to be carried out when a debtor’s business is authorized to be operated under 11 U.S.C. §§ 721 , 1108, 1304, 1203 or 1204.”
Reading Co. v. Brown, 391 U.S. 471 (1968). “The government tax claims in this case, nearly all of which will be excluded from sharing in the estate under today's decision, amount to approximately $245,000. [2] Unlike straight bankruptcy, only the debtor himself may file a petition for an arrangement under Chapter XI.”
West v. Hsu (In Re Advanced Modular Power Sys., Inc.), 413 B.R. 643 (Bankr. S.D. Tex. 2009). “11 U.S.C. § 721 . The principal duty of a Chapter 7 trustee is to “ ‘collect and reduce to money the property of the estate for which [he] serves, and to close such estate as expeditiously as is compatible with the best interests of the parties in interest.”
In Re: Am. Preferred Prescription, Inc., Debtor. Kenneth P. Silverman, Esq., Tr.-Appellant v. Tracar, S.A., 255 F.3d 87 (2d Cir. 2001). “The parties seem to agree that at this point, the Trustee had powers equivalent to those of a trustee appointed pursuant to 11 U.S.C. § 721 . No appeal was taken from this order (“the June 24 order”).”
In Re Anthony Ferrante & Sons, Inc., 119 B.R. 45 (D.N.J. 1990). “First, the court stated that the trustee could be compelled to “operate a going business” only under 11 U.S.C. § 721 . 3 The court concluded that DEP had failed to comply with § 721 and therefore could not force the Trustee to operate the System: No application was ever made…”
In Re Engman, 331 B.R. 277 (Bankr. W.D. Mich. 2005). “See, 11 U.S.C. § 721 . However, what was exactly agreed upon between the condominium association and the Trustee with respect to the remaining responsibilities of the developer is unclear.”
In the Matter of Brints Cotton Mktg., Inc., Debtor. Mike Addison v. David R. Langston, Tr., 737 F.2d 1338 (5th Cir. 1984). “Only in very limited circumstances could the bankruptcy court have granted the trustee of Brints’ estate the right to continue to operate its business beyond the filing of its Chapter 7 petition, and then only for a limited period.”
In Re: Stergios Messina v., 687 F.3d 74 (3rd Cir. 2012). “See 11 U.S.C. § 721 . This occurs when the trustee sells the debtor’s property if it is free and clear of liens, as long as the property is not exempt, or if it is worth more than any security interest or lien attached to the property and any exemption that the debt- or holds in…”
Minnesota Pollution Control Agency v. Gouveia (In Re Globe Bldg. Materials, Inc.), 345 B.R. 619 (Bankr. N.D. Ind. 2006). “Upon conversion, no order pursuant to 11 U.S.C. § 721 was entered which author *628 ized the Trustee to operate the Debtor’s business.”
In Re Comput. Learning Centers, Inc., 285 B.R. 191 (Bankr. E.D. Va. 2002). “The trustee had been authorized to operate the receivables center under 11 U.S.C. § 721 to collect the student loans.”
In Re Euro-Am. Lodging Corp., 365 B.R. 421 (Bankr. S.D.N.Y. 2007). “” 11 U.S.C. § 721 . The better alternative is to convert the case to chapter 11, where the Debtor is free to operate and can but is not under a duty to liquidate, and appoint a chapter 11 trustee as an estate fiduciary.”
Stuart v. Pingree (In Re Afco Dev. Corp.), 65 B.R. 781 (Bankr. D. Utah 1986). “11 U.S.C. § 721 . But when a case is converted to Chapter 7, the Bankruptcy Code recognizes that the attempt to preserve the debtor’s going-concern value and keep the assets of the estate working for the benefit of creditors has failed.”
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