11 USC § 721 - Authorization to operate business

---
identifier: "/us/usc/t11/s721"
source: "usc"
legal_status: "official_legal_evidence"
title: "11 USC § 721 - Authorization to operate business"
title_number: 11
title_name: "BANKRUPTCY"
section_number: "721"
section_name: "Authorization to operate business"
chapter_number: 7
chapter_name: "LIQUIDATION"
subchapter_number: "II"
subchapter_name: "COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2606.)"
---


# § 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.

---

**Source Credit**: (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.