Section 105: Powers of Courts

Title 11 of the United States Code - Bankruptcy GENERAL PROVISIONS – CHAPTER 1

Powers of Courts - Section 105

11 USCS § 105

(a) The court may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title. No provision of this title providing for the raising of an issue by a party in interest shall be construed to preclude the court from, sua sponte, taking any action or making any determination necessary or appropriate to enforce or implement court orders or rules, or to prevent an abuse of process.

(b) Notwithstanding subsection (a) of this section, a court may not appoint a receiver in a case under this title [11 USCS §§ 101 et seq.].

(c) The ability of any district judge or other officer or employee of a district court to exercise any of the authority or responsibilities conferred upon the court under this title [11 USCS §§ 101 et seq.] shall be determined by reference to the provisions relating to such judge, officer, or employee set forth in title 28 [28 USCS §§ 1 et seq.]. This subsection shall not be interpreted to exclude bankruptcy judges and other officers or employees appointed pursuant to chapter 6 of title 28 [28 USCS §§ 151 et seq.] from its operation.

(d) The court, on its own motion or on the request of a party in interest--

   (1) shall hold such status conferences as are necessary to further the expeditious and economical resolution of the case; and

   (2) unless inconsistent with another provision of this title [11 USCS §§ 101 et seq.] or with applicable Federal Rules of Bankruptcy Procedure, issue an order at any such conference prescribing such limitations and conditions as the court deems appropriate to ensure that the case is handled expeditiously and economically, including an order that--

      (A) sets the date by which the trustee must assume or reject an executory contract or unexpired lease; or

      (B) in a case under chapter 11 of this title [11 USCS §§ 1101 et seq.]--

         (i) sets a date by which the debtor, or trustee if one has been appointed, shall file a disclosure statement and plan;

         (ii) sets a date by which the debtor, or trustee if one has been appointed, shall solicit acceptances of a plan;

         (iii) sets the date by which a party in interest other than a debtor may file a plan;

         (iv) sets a date by which a proponent of a plan, other than the debtor, shall solicit acceptances of such plan;

         (v) fixes the scope and format of the notice to be provided regarding the hearing on approval of the disclosure statement; or

         (vi) provides that the hearing on approval of the disclosure statement may be combined with the hearing on confirmation of the plan.

Further Understanding Through Case Law

Statutory & Equitable Powers

“A bankruptcy court has both statutory authority, 11 U.S.C. § 105 (1988), to prevent abuses of process, and common law precedent to exercise its equitable powers. In exercising the latter, a bankruptcy court is compelled to weigh the benefits of providing an equitable order against the attending harm suffered by the interest against whom the order is imposed.”

In re Hale 980 F.2d 1176 (1992) 

Purpose of Statute

“The basic purpose of [section 105] is to enable the court to do whatever is necessary to aid its jurisdiction, i.e., anything arising in or relating to a bankruptcy case.”

In re DeLorean Motor Co. 991 F.3d 1236 (1993)

Limitations of Bankruptcy Court Powers

“11 U.S.C. § 105(a) is a basis for broad exercise of equitable powers by bankruptcy court but such equitable power should be exercised only where it is necessary or appropriate to implement provisions of Bankruptcy Code or where equity and substantial justice requires it.”

In re Dunckle Associates, Inc. 19 BR 481 (1982)

Attorney Consultation!! $99 Retainer Fee!! Free Bankruptcy Evaluation
Motivation Bills Assets Budget
The law varies from state-to-state — please provide your zip code!

Why are you considering bankruptcy? (select all that apply)









Motivation Bills Assets Budget

What bills do you have? (select all that apply)








Motivation Bills Assets Budget
Do you own real estate ?
If Yes , are you behind in these payments?


Do you own an automobile ?
If Yes , are you behind in these payments?


Do you have any additional assets worth more than $1000.00?
Motivation Bills Assets Budget

What types of income do you have? (select all that apply)






$
Contact Info Your Evaluation

Call For A Consultation

toll free: 1-866-447-8460