---
kind: "section"
citation: "11 U.S.C. § 721"
title: "11"
title_heading: "Bankruptcy"
number: "721"
heading: "Authorization to operate business"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/11/721"
units:
  - "Chapter 7 — Liquidation"
  - "Subchapter II — Collection, Liquidation, and Distribution of the Estate"
---

# §721. Authorization to operate business


The court may authorize the trustee to operate the business of the [debtor](/usc/11/101.md?p=13) 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.)

## Notes

### 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.