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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 09:52:37 -04:00

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LegalText 11 U.S.C. § 1108 Authorization to operate business us united_states_code code_section 11 BANKRUPTCY 11 REORGANIZATION 1108 11 U.S.C. § 1108 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip /us/usc/t11/s1108 data/legal/raw/us/code/title-11/usc11.xml 497f0b3ed2b7f1edc10846c8578acdf0e2c775df9526fbfc9052736b474d7c9c 49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2 1b8ad75a29df0226d76a40dae9dbd1123f12379fbba553e8fd9661132e3cab6c 2026-07-04 official
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11 U.S.C. § 1108 - Authorization to operate business

Text

Unless the court, on request of a party in interest and after notice and a hearing, orders otherwise, the trustee may operate the debtors business.

(Pub. L. 95598, Nov. 6, 1978, 92 Stat. 2629; Pub. L. 98353, title III, § 504, July 10, 1984, 98 Stat. 384.)

Notes

Historical and Revision Notes

legislative statementsThe House amendment adopts section 1108 of the House bill in preference to the style of an identical substantive provision contained in the Senate amendment. Throughout title 11 references to a “trustee” is read to include other parties under various sections of the bill. For example, section 1107 applies to give the debtor in possession all the rights and powers of a trustee in a case under chapter 11; this includes the power of the trustee to operate the debtors business under section 1108.

senate report no. 95989This section permits the debtors business to continue to be operated, unless the court orders otherwise. Thus, in a reorganization case, operation of the business will be the rule, and it will not be necessary to go to the court to obtain an order authorizing operation.

house report no. 95595This section does not presume that a trustee will be appointed to operate the business of the debtor. Rather, the power granted to trustee under this section is one of the powers that a debtor in possession acquires by virtue of proposed 11 U.S.C. 1107.

Editorial Notes

Amendments1984—Pub. L. 98353 inserted “, on request of a party in interest and after notice and a hearing,”.

Statutory Notes and Related Subsidiaries

Effective Date of 1984 AmendmentAmendment by Pub. L. 98353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98353, set out as a note under section 101 of this title.