Title 11 — Bankruptcy
Chapter 7 — Liquidation
§ 704. Duties of trustee
Statutory text
The trustee shall—
collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties in interest;
be accountable for all property received;
ensure that the debtor shall perform his intention as specified in section 521(a)(2)(B) of this title;
investigate the financial affairs of the debtor;
if a purpose would be served, examine proofs of claims and object to the allowance of any claim that is improper;
if advisable, oppose the discharge of the debtor;
unless the court orders otherwise, furnish such information concerning the estate and the estate’s administration as is requested by a party in interest;
if the business of the debtor is authorized to be operated, file with the court, with the United States trustee, and with any governmental unit charged with responsibility for collection or determination of any tax arising out of such operation, periodic reports and summaries of the operation of such business, including a statement of receipts and disbursements, and such other information as the United States trustee or the court requires;
make a final report and file a final account of the administration of the estate with the court and with the United States trustee;
if with respect to the debtor there is a claim for a domestic support obligation, provide the applicable notice specified in subsection (c);
if, at the time of the commencement of the case, the debtor (or any entity designated by the debtor) served as the administrator (as defined in section 3 of the Employee Retirement Income Security Act of 1974) of an employee benefit plan, continue to perform the obligations required of the administrator; and
use all reasonable and best efforts to transfer patients from a health care business that is in the process of being closed to an appropriate health care business that—
is in the vicinity of the health care business that is closing;
provides the patient with services that are substantially similar to those provided by the health care business that is in the process of being closed; and
maintains a reasonable quality of care.
With respect to a debtor who is an individual in a case under this chapter—
the United States trustee (or the bankruptcy administrator, if any) shall review all materials filed by the debtor and, not later than 10 days after the date of the first meeting of creditors, file with the court a statement as to whether the debtor’s case would be presumed to be an abuse under section 707(b); and
not later than 7 days after receiving a statement under subparagraph (A), the court shall provide a copy of the statement to all creditors.
The United States trustee (or bankruptcy administrator, if any) shall, not later than 30 days after the date of filing a statement under paragraph (1), either file a motion to dismiss or convert under section 707(b) or file a statement setting forth the reasons the United States trustee (or the bankruptcy administrator, if any) does not consider such a motion to be appropriate, if the United States trustee (or the bankruptcy administrator, if any) determines that the debtor’s case should be presumed to be an abuse under section 707(b) and the product of the debtor’s current monthly income, multiplied by 12 is not less than—
in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner; or
in the case of a debtor in a household of 2 or more individuals, the highest median family income of the applicable State for a family of the same number or fewer individuals.
In a case described in subsection (a)(10) to which subsection (a)(10) applies, the trustee shall—
provide written notice to the holder of the claim described in subsection (a)(10) of such claim and of the right of such holder to use the services of the State child support enforcement agency established under sections 464 and 466 of the Social Security Act for the State in which such holder resides, for assistance in collecting child support during and after the case under this title;
include in the notice provided under clause (i) the address and telephone number of such State child support enforcement agency; and
include in the notice provided under clause (i) an explanation of the rights of such holder to payment of such claim under this chapter;
provide written notice to such State child support enforcement agency of such claim; and
include in the notice provided under clause (i) the name, address, and telephone number of such holder; and
at such time as the debtor is granted a discharge under section 727, provide written notice to such holder and to such State child support enforcement agency of—
the granting of the discharge;
the last recent known address of the debtor;
the last recent known name and address of the debtor’s employer; and
the name of each creditor that holds a claim that—
is not discharged under paragraph (2), (4), or (14A) of section 523(a); or
was reaffirmed by the debtor under section 524(c).
The holder of a claim described in subsection (a)(10) or the State child support enforcement agency of the State in which such holder resides may request from a creditor described in paragraph (1)(C)(iv) the last known address of the debtor.
Notwithstanding any other provision of law, a creditor that makes a disclosure of a last known address of a debtor in connection with a request made under subparagraph (A) shall not be liable by reason of making such disclosure.
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.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 704
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2605
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2605Pub. L. 98–353 § 474 · 98 Stat. 333
Substituted · 11 U.S.C. § 704(1)
Pub. L. 98–353, § 474, substituted “close such estate” for “close up such estate”
Source evidence
Code amendment note
Par. (1). Pub. L. 98–353, § 474, substituted “close such estate” for “close up such estate”.Enacted provision · exact public law section
Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”.Pub. L. 98–353 § 311(a) · 98 Stat. 333
Added · 11 U.S.C. § 704(3)(9)
Pub. L. 98–353, § 311(a), added par. (3)
Redesignated · 11 U.S.C. § 704(3)(9)
Pub. L. 98–353, § 311(a), redesignated former pars. (3) to (8) as (4) to (9), respectively
Source evidence
Code amendment note
Pars. (3) to (9). Pub. L. 98–353, § 311(a), added par. (3) and redesignated former pars. (3) to (8) as (4) to (9), respectively.Enacted provision · exact public law section
(a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 217(1) · 100 Stat. 3088
Inserted · 11 U.S.C. § 704(8)
Pub. L. 99–554, § 217(1), inserted “, with the United States trustee,” after “with the court” and “the United States trustee or” after “information as”
Source evidence
Code amendment note
Par. (8). Pub. L. 99–554, § 217(1), inserted “, with the United States trustee,” after “with the court” and “the United States trustee or” after “information as”.Enacted provision · exact public law section
(1) in paragraph (8) by— (A) inserting “, with the United States trustee,” after “court” the first place it appears, and (B) inserting “the United States trustee or” after “information as”, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 217(2) · 100 Stat. 3088
Inserted · 11 U.S.C. § 704(9)
Pub. L. 99–554, § 217(2), inserted “with the United States trustee” after “court”
Source evidence
Code amendment note
Par. (9). Pub. L. 99–554, § 217(2), inserted “with the United States trustee” after “court”.Enacted provision · exact public law section
(2) in paragraph (9) by inserting “and with the United States trustee” before the period at the end thereof.Pub. L. 109–8 § 102(c)(1) · 119 Stat. 23
Amended · 11 U.S.C. § 704
Pub. L. 109–8, § 102(c)(1), designated existing provisions as subsec. (a)
Source evidence
Code amendment note
Pub. L. 109–8, § 102(c)(1), designated existing provisions as subsec. (a).Enacted provision · exact public law section
(1) by inserting “(a)” before “The trustee shall—”; andPub. L. 109–8 § 219(a)(1) · 119 Stat. 23
Added · 11 U.S.C. § 704(a)(10)
Pub. L. 109–8, § 219(a)(1), added par. (10)
Source evidence
Code amendment note
Subsec. (a)(10). Pub. L. 109–8, § 219(a)(1), added par. (10).Enacted provision · exact public law section
(1) in subsection (a)— (A) in paragraph (8), by striking “and” at the end; (B) in paragraph (9), by striking the period and inserting a semicolon; and (C) by adding at the end the following: “(10) if with respect to the debtor there is a claim for a domestic support obligation, provide the applicable notice specified in subsection (c); and” ; andPub. L. 109–8 § 446(b) · 119 Stat. 23
Added · 11 U.S.C. § 704(a)(11)
Pub. L. 109–8, § 446(b), added par. (11)
Source evidence
Code amendment note
Subsec. (a)(11). Pub. L. 109–8, § 446(b), added par. (11).Enacted provision · exact public law section
(b) Duties of Trustees.— Section 704(a) of title 11, United States Code, as amended by sections 102 and 219, is amended— (1) in paragraph (10), by striking “and” at the end; and (2) by adding at the end the following: “(11) if, at the time of the commencement of the case, the debtor (or any entity designated by the debtor) served as the administrator (as defined in section 3 of the Employee Retirement Income Security Act of 1974) of an employee benefit plan, continue to perform the obligations required of the administrator; and” .Pub. L. 109–8 § 1105(a) · 119 Stat. 23
Added · 11 U.S.C. § 704(a)(12)
Pub. L. 109–8, § 1105(a), added par. (12)
Source evidence
Code amendment note
Subsec. (a)(12). Pub. L. 109–8, § 1105(a), added par. (12).Enacted provision · exact public law section
(a) In General.— Section 704(a) of title 11, United States Code, as amended by sections 102, 219, and 446, is amended by adding at the end the following: “(12) use all reasonable and best efforts to transfer patients from a health care business that is in the process of being closed to an appropriate health care business that— “(A) is in the vicinity of the health care business that is closing; “(B) provides the patient with services that are substantially similar to those provided by the health care business that is in the process of being closed; and “(C) maintains a reasonable quality of care.” .Pub. L. 109–8 § 102(c)(2) · 119 Stat. 23
Added · 11 U.S.C. § 704(b)
Pub. L. 109–8, § 102(c)(2), added subsec. (b)
Source evidence
Code amendment note
Subsec. (b). Pub. L. 109–8, § 102(c)(2), added subsec. (b).Enacted provision · exact public law section
(2) by adding at the end the following: “(b) (1) Deadlines. With respect to a debtor who is an individual in a case under this chapter— “(A) the United States trustee (or the bankruptcy administrator, if any) shall review all materials filed by the debtor and, not later than 10 days after the date of the first meeting of creditors, file with the court a statement as to whether the debtor’s case would be presumed to be an abuse under section 707(b); and “(B) not later than 5 days after receiving a statement under subparagraph (A), the court shall provide a copy of the statement to all creditors. “(2) The United States trustee (or bankruptcy administrator, if any) shall, not later than 30 days after the date of filing a statement under paragraph (1), either file a motion to dismiss or convert under section 707(b) or file a statement setting forth the reasons the United States trustee (or the bankruptcy administrator, if any) does not consider such a motion to be appropriate, if the United States trustee (or the bankruptcy administrator, if any) determines that the debtor’s case should be presumed to be an abuse under section 707(b) and the product of the debtor’s current monthly income, multiplied by 12 is not less than— “(A) in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner; or “(B) in the case of a debtor in a household of 2 or more individuals, the highest median family income of the applicable State for a family of the same number or fewer individuals.” .Pub. L. 109–8 § 219(a)(2) · 119 Stat. 23
Added · 11 U.S.C. § 704(c)
Pub. L. 109–8, § 219(a)(2), added subsec. (c)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 109–8, § 219(a)(2), added subsec. (c).Enacted provision · exact public law section
(2) by adding at the end the following: “(c) (1) Notices. In a case described in subsection (a)(10) to which subsection (a)(10) applies, the trustee shall— “(A) (i) provide written notice to the holder of the claim described in subsection (a)(10) of such claim and of the right of such holder to use the services of the State child support enforcement agency established under sections 464 and 466 of the Social Security Act for the State in which such holder resides, for assistance in collecting child support during and after the case under this title; “(ii) include in the notice provided under clause (i) the address and telephone number of such State child support enforcement agency; and “(iii) include in the notice provided under clause (i) an explanation of the rights of such holder to payment of such claim under this chapter; “(B) (i) provide written notice to such State child support enforcement agency of such claim; and “(ii) include in the notice provided under clause (i) the name, address, and telephone number of such holder; and “(C) at such time as the debtor is granted a discharge under section 727, provide written notice to such holder and to such State child support enforcement agency of— “(i) the granting of the discharge; “(ii) the last recent known address of the debtor; “(iii) the last recent known name and address of the debtor’s employer; and “(iv) the name of each creditor that holds a claim that— “(I) is not discharged under paragraph (2), (4), or (14A) of section 523(a); or “(II) was reaffirmed by the debtor under section 524(c). “(2) (A) The holder of a claim described in subsection (a)(10) or the State child support enforcement agency of the State in which such holder resides may request from a creditor described in paragraph (1)(C)(iv) the last known address of the debtor. “(B) Notwithstanding any other provision of law, a creditor that makes a disclosure of a last known address of a debtor in connection with a request made under subparagraph (A) shall not be liable by reason of making such disclosure.” .Statutory Time-Periods Technical Amendments Act of 2009
Pub. L. 111–16 § 2(7) · 123 Stat. 1607
Substituted · 11 U.S.C. § 704(b)(1)(B)
Pub. L. 111–16 substituted “7 days” for “5 days”
Source evidence
Code amendment note
Subsec. (b)(1)(B). Pub. L. 111–16 substituted “7 days” for “5 days”.Enacted provision · exact public law section
(7) in section 704(b)(1)(B), by striking “5 days” and inserting “7 days”;Effective date note
Amendment by Pub. L. 111–16 effective Dec. 1, 2009, see section 7 of Pub. L. 111–16, set out as a note under section 109 of this title.Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(24) · 124 Stat. 3557
Substituted · 11 U.S.C. § 704(a)(3)
Pub. L. 111–327 substituted “521(a)(2)(B)” for “521(2)(B)”
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 111–327 substituted “521(a)(2)(B)” for “521(2)(B)”.Enacted provision · exact public law section
(24) in section 704(a)(3) by striking “521(2)(B)” and inserting “521(a)(2)(B)”,
13 of 14 references resolved to an enrolled provision · 1 partial
Notes
Historical and Revision Notes
legislative statements
Section 704(8) of the Senate amendment is deleted in the House amendment. Trustees should give constructive notice of the commencement of the case in the manner specified under section 549(c) of title 11.
senate report no. 95–989
The essential duties of the trustee are enumerated in this section. Others, or elaborations on these, may be prescribed by the Rules of Bankruptcy Procedure to the extent not inconsistent with those prescribed by this section. The duties are derived from section 47a of the Bankruptcy Act [section 75(a) of former title 11].
The trustee’s principal duty is to collect and reduce to money the property of the estate for which he serves, and to close up the estate as expeditiously as is compatible with the best interests of parties in interest. He must be accountable for all property received, and must investigate the financial affairs of the debtor. If a purpose would be served (such as if there are assets that will be distributed), the trustee is required to examine proofs of claims and object to the allowance of any claim that is improper. If advisable, the trustee must oppose the discharge of the debtor, which is for the benefit of general unsecured creditors whom the trustee represents.
The trustee is responsible to furnish such information concerning the estate and its administration as is requested by a party in interest. If the business of the debtor is authorized to be operated, then the trustee is required to file with governmental units charged with the responsibility for collection or determination of any tax arising out of the operation of the business periodic reports and summaries of the operation, including a statement of receipts and disbursements, and such other information as the court requires. He is required to give constructive notice of the commencement of the case in the manner specified under section 342(b).
Editorial Notes
References in Text
Section 3 of the Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(11), is classified to section 1002 of Title 29, Labor.
Sections 464 and 466 of the Social Security Act, referred to in subsec. (c)(1)(A)(i), are classified to sections 664 and 666, respectively, of Title 42, The Public Health and Welfare.
Amendments1984–2010 · 5 rounds
2010
Subsec. (a)(3). Pub. L. 111–327 substituted “521(a)(2)(B)” for “521(2)(B)”.
2009
Subsec. (b)(1)(B). Pub. L. 111–16 substituted “7 days” for “5 days”.
2005
Pub. L. 109–8, § 102(c)(1), designated existing provisions as subsec. (a).
Subsec. (a)(10). Pub. L. 109–8, § 219(a)(1), added par. (10).
Subsec. (a)(11). Pub. L. 109–8, § 446(b), added par. (11).
Subsec. (a)(12). Pub. L. 109–8, § 1105(a), added par. (12).
Subsec. (b). Pub. L. 109–8, § 102(c)(2), added subsec. (b).
Subsec. (c). Pub. L. 109–8, § 219(a)(2), added subsec. (c).
1986
Par. (8). Pub. L. 99–554, § 217(1), inserted “, with the United States trustee,” after “with the court” and “the United States trustee or” after “information as”.
Par. (9). Pub. L. 99–554, § 217(2), inserted “with the United States trustee” after “court”.
1984
Par. (1). Pub. L. 98–353, § 474, substituted “close such estate” for “close up such estate”.
Pars. (3) to (9). Pub. L. 98–353, § 311(a), added par. (3) and redesignated former pars. (3) to (8) as (4) to (9), respectively.
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by Pub. L. 111–16 effective , see section 7 of Pub. L. 111–16, set out as a note under section 109 of this title.
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
Effective Date of 1986 Amendment
Effective date and applicability of amendment by Pub. L. 99–554 dependent upon the judicial district involved, see section 302(d), (e) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Credits
1978–2010 · 6 acts
- 1978Pub. L. 95–598, , 92 Stat. 2605
- 1984Pub. L. 98–353, title III, §§ 311(a), 474, , 98 Stat. 355, 381
- 1986Pub. L. 99–554, title II, § 217, , 100 Stat. 3100
- 2005Pub. L. 109–8, title I, § 102(c), title II, § 219(a), title IV, § 446(b), title XI, § 1105(a), , 119 Stat. 32, 55, 118, 192
- 2009Pub. L. 111–16, § 2(7), , 123 Stat. 1607
- 2010Pub. L. 111–327, § 2(a)(24), , 124 Stat. 3560.
Show as published
(Pub. L. 95–598, , 92 Stat. 2605; Pub. L. 98–353, title III, §§ 311(a), 474, , 98 Stat. 355, 381; Pub. L. 99–554, title II, § 217, , 100 Stat. 3100; Pub. L. 109–8, title I, § 102(c), title II, § 219(a), title IV, § 446(b), title XI, § 1105(a), , 119 Stat. 32, 55, 118, 192; Pub. L. 111–16, § 2(7), , 123 Stat. 1607; Pub. L. 111–327, § 2(a)(24), , 124 Stat. 3560.)