Sierra Madre Bankruptcy Attorney, Bankruptcy Lawyer, Bankruptcy Code 11 USC Section 1304

TITLE 11 - BANKRUPTCY
CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
                  INCOME                          
    SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
    Sec. 1304. Debtor engaged in business

-STATUTE-
      (a) A debtor that is self-employed and incurs trade credit in the
    production of income from such employment is engaged in business.
      (b) 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.
      (c) A debtor engaged in business shall perform the duties of the
    trustee specified in section 704(8) of this title.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2646; Pub. L. 98-353, title
    III, Secs. 311(b)(2), 526, July 10, 1984, 98 Stat. 355, 389.)


                       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 (Sec. 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.

                                AMENDMENTS                            
      1984 - Subsec. (b). Pub. L. 98-353, Sec. 526, struck out the
    comma after "of the debtor".
      Subsec. (c). Pub. L. 98-353, Sec. 311(b)(2), substituted "section
    704(8)" for "section 704(7)".

                     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.

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