11 U.S. Code § 1304 - Debtor engaged in business
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.
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.
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)”.