Authority For Business Operation In Chapter 7

In a few cases, the court may authorize a trustee to continue business operations during Chapter 7 liquidations. Most often, operation is allowed for collecting account receivable, collecting notes, selling assets and inventory for commercial prices, and amending tax returns for refunds. The court almost never allows creditors to assume business operation in Chapter 7 for the purpose of continued commercial enterprises. If continued operation is necessary, creditors may, if acting as trustee, request conversion to either Chapter 11, 12, or 13.