Los Angeles Bankruptcy Attorney, Bankruptcy Lawyer, Bankruptcy Code 11 USC Section 721

TITLE 11 - BANKRUPTCY
CHAPTER 7 - LIQUIDATION
    SUBCHAPTER II - COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE
                     ESTATE                    

-HEAD-
    Sec. 721. Authorization to operate business

-STATUTE-
      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.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2606.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      This section is derived from section 2a(5) of the Bankruptcy Act
    [section 11(a)(5) of former title 11]. It permits the court to
    authorize the operation of any business of the debtor for a limited
    period, if the operation is in the best interest of the estate and
    consistent with orderly liquidation of the estate. An example is
    the operation of a watch company to convert watch movements and
    cases into completed watches which will bring much higher prices
    than the component parts would have brought.

-End-
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