Subchapter I - Officers and Administration

Table of Contents

• 701 Interim trustee
• 702 Election of trustee
• 703 Successor trustee
• Duties of trustee
• Creditors' committee
• Conversion
• Dismissal

§ 701. Interim Trustee

1. 
   
   1. Promptly after the order for relief under this chapter, the United States trustee shall appoint one disinterested person that is a member of the panel of private trustees established under section 586 (a) (1) of title 28 or that is serving as trustee in the case immediately before the order for relief under this chapter to serve as interim trustee in the case.
   2. If none of the members of such panel is willing to serve as interim trustee in the case, then the United States may serve as interim trustee in the case.
2. The service of an interim trustee under this section terminates when a trustee elected or designated under section 702 of this title to serve as trustee in the case qualifies under section 322 of this title.
3. An interim trustee serving under this section is a trustee in a case under this title.

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§ 702. Election of trustee

1. A creditor may vote for a candidate for trustee only if such creditor –
   1. holds an allowable, undisputed, fixed, liquidated, unsecured claim of a kind entitled to distribution under section 726 (a)(2), 726 (a)(3), 726(a)(4), 752(a), 766(b), or 766(i) of this title;
   2. does not have an interest materially adverse, other than an equity interest that is not substantial in relation to such creditor’s interest as creditor, to the interest of creditors entitled to such distributions; and
   3. is not an insider.
2. At the meeting of creditors held under section 341 of this title, creditors may elect one person to serve as trustee in the case if election of a trustee is requested by creditors that may vote under subsection (a) of this section, and that hold at least 20 percent in amount of the claims specified in subsection (a)(1) of this section that are held by creditors that may vote under subsection (a) of this section.
3. A candidate for trustee is elected trustee if –
   1. creditors holding at least 20 percent in amount of the claims of a kind specified in subsection (a)(1) of this section that are held by creditors that may vote under subsection that are held by creditors that may vote under subsection (a) of this section vote; and
   2. such candidate receives the votes of creditors holding a majority in amount of claims specified in subsection (a)(1) of this section that are held by creditors that vote for a trustee.
4. If a trustee is not elected under this section then the interim trustee shall serve as a trustee in the case.

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§ 703. Successor trustee

1. If a trustee dies or resigns during a case, fails to qualify under section 322 of this title, or is removed under section 324 of this title, creditors may elect, in the manner specified in section 702 of this title, a person to fill the vacancy in the office of trustee.
2. Pending election of a trustee under subsection (a) of this section, if necessary to preserve or prevent loss to the estate, the United States trustee may appoint an interim trustee in the manner specified in section 701(a).
3. If creditors do not elect a successor trustee under subsection (a) of this section or if a trustee is needed in a case reopened under section 350 of this title, then the United States trustee –
   1. shall appoint on disinterested person that is a member of the panel of private trustees established under section 586(a)(1) of title 28 to serve as trustee in the case; or
   2. may, if none of the disinterested members of such panel is willing to serve as trustee, serve as trustee in the case.

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§ 704. Duties of trustee

The trustee shall –

1. 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;
2. be accountable for all property received;
3. ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;
4. investigate the financial affairs of the debtor;
5. if a purpose would be served, examine proofs of claims and object to the allowance of any claim that is improper;
6. if advisable, oppose the discharge of the debtor;
7. unless the court orders otherwise, furnish such information concerning the estate and the estate’s administration as is requested by a party in interest;
8. if the business of the debtor is authorized to be operated, file with the court, with the United States trustee, and with the governmental unit charges 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; and
9. make a final report and file a final account of the administration of the estate with the court and with the United States trustee.

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§ 705 Creditor’s Committee

1. At the meeting under section 341(a) of this title, creditors that may vote for a trustee under section 702(a) of this title may elect a committee of not fewer than three and not more than eleven, creditors, each of whom holds an allowable unsecured claim of a kind entitled to distribution under section 726(a)(2) of this title.
2. A committee elected under subsection (a) of this section may consult with the trustee of the United States trustee in connection with the administration of the estate, make recommendations to the trustee of the United States trustee respecting the performance of the trustee’s duties, and submit to the court of the United States trustee any question affecting the administration of the estate.

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§ 706. Conversion

1. The debtor may convert a case under this chapter to as case under chapter 11, 12, or 13 of this title at any time, if the case has not been converted under section 1112, 1208 or 1307 of this title. Any waiver of the right to convert a case under this subsection is enforceable.
2. On request of a party in interest and after notice and a hearing, the court may convert a case under this chapter to a case under chapter 11 of this title at any time.
3. The court may not convert a case under this chapter to a case under chapter 12 or 13 of this title unless the debtor requests such as conversion.
4. Notwithstanding any other provision of this section, a case may not be converted to a case under another chapter of this title unless the debtor may be a debtor under such as chapter.

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§ 707. Dismissal

1. The court may dismiss a case under this chapter only after notice and hearing and only for cause including –
   1. unreasonable delay by the debtor that is prejudicial to creditors;
   2. nonpayment of any fees or charges required under chapter 123 of title 28; and
   3. failure of the debtor in a voluntary case to file, within fifteen days or such additional time as the court may allow after the filing of the petition commencing such case, the information required by paragraph (1) of section 521, but only on a motion by the United States trustee.
2. After notice and a hearing, the court, on its own motion or on a motion by the United States trustee, but not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting the relied requested by the debtor. In making a determination whether to dismiss a case under this section, the court may not take into consideration whether a debtor has made, or continues to make, charitable contributions (that meet the definition of “charitable contribution” under section 548(d)(3) to any qualified religious or charitable entity or organization (as that term is defined in section 548(d)(4)).

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