§ 1304. Debtor engaged in business

Statutory text

A debtor that is self-employed and incurs trade credit in the production of income from such employment is engaged in business.

Unless the court orders otherwise, a debtor engaged in business may operate the business of the debtor and, subject to any limitations on a trustee under sections 363(c) and 364 of this title and to such limitations or conditions as the court prescribes, shall have, exclusive of the trustee, the rights and powers of the trustee under such sections.

A debtor engaged in business shall perform the duties of the trustee specified in section 704(a)(8) of this title.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1978
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 1304
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2646
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2646
1984
Pub. L. 98–353 § 526 · 98 Stat. 333
Struck · 11 U.S.C. § 1304(b)
Pub. L. 98–353, § 526, struck out the comma after “of the debtor”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 98–353, § 526, struck out the comma after “of the debtor”.
Enacted provision · exact public law section
Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”.
Effective date note
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
1984
Pub. L. 98–353 § 311(b)(2) · 98 Stat. 333
Substituted · 11 U.S.C. § 1304(c)
Pub. L. 98–353, § 311(b)(2), substituted “section 704(8)” for “section 704(7)”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 98–353, § 311(b)(2), substituted “section 704(8)” for “section 704(7)”.
Enacted provision · exact public law section
(2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”.
Effective date note
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
2010
Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(40) · 124 Stat. 3557
Substituted · 11 U.S.C. § 1304(c)
Pub. L. 111–327 substituted “704(a)(8)” for “704(8)”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 111–327 substituted “704(a)(8)” for “704(8)”.
Enacted provision · exact public law section
(40) in section 1304(c) by striking “704(8)” and inserting “704(a)(8)”,

3 of 4 references resolved to an enrolled provision · 1 partial

Notes

Historical and Revision Notes

legislative statements

Section 1304(b) of the House amendment adopts the approach taken in the comparable section of the Senate amendment as preferable to the position taken in the House bill.

senate report no. 95–989

Increased access to the simpler, speedier, and less expensive debtor relief provisions of chapter 13 is accomplished by permitting debtors engaged in business to proceed under chapter 13, provided their income is sufficiently stable and regular to permit compliance with a chapter 13 plan [section 101(24)] and that the debtor (or the debtor and spouse) do not owe liquidated, noncontingent unsecured debts of $50,000, or liquidated, noncontingent secured debts of $200,000 (§ 109(d)).

Section 1304(a) states that a self-employed individual who incurs trade credit in the production of income is a debtor engaged in business.

Subsection (b) empowers a chapter 13 debtor engaged in business to operate his business, subject to the rights, powers and limitations that pertain to a trustee under sections 363(c) and 364 of title 11, and subject to such further limitations and conditions as the court may prescribe.

Subsection (c) requires a chapter 13 debtor engaged in business to file with the court certain financial statements relating to the operation of the business.

Editorial Notes

Amendments1984–2010 · 2 rounds

2010

Subsec. (c). Pub. L. 111–327 substituted “704(a)(8)” for “704(8)”.

1984

Subsec. (b). Pub. L. 98–353, § 526, struck out the comma after “of the debtor”.

Subsec. (c). Pub. L. 98–353, § 311(b)(2), substituted “section 704(8)” for “section 704(7)”.

Statutory Notes and Related Subsidiaries

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.

Credits

1978–2010 · 3 acts

1978Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2646
1984Pub. L. 98–353, title III, §§ 311(b)(2), 526, July 10, 1984, 98 Stat. 355, 389
2010Pub. L. 111–327, § 2(a)(40), Dec. 22, 2010, 124 Stat. 3562.

Show as published

(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2646; Pub. L. 98–353, title III, §§ 311(b)(2), 526, July 10, 1984, 98 Stat. 355, 389; Pub. L. 111–327, § 2(a)(40), Dec. 22, 2010, 124 Stat. 3562.)