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11 U.S.C. § 702 — Election of trustee
Federal law — U.S. Code and appendices · legal_authorities
**(a)** 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(h), 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 a creditor, to the interest of creditors entitled to such distribution; and
(3) is not an insider.
**(b)** At the meeting of creditors held under [section 341 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section341&num=0&edition=prelim), 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.
**(c)** 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 (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.
**(d)** If a trustee is not elected under this section, then the interim trustee shall serve as trustee in the case.
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Source file: Laws/federal/codes/united-states-code/title-11/section-702-election-of-trustee--732b3b13b3.md
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Source location: Title 11, Chapter 7, § 702; chapter-007-liquidation.md
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**(a)** 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(h), 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 a creditor, to the interest of creditors entitled to such distribution; and
(3) is not an insider.
**(b)** At the meeting of creditors held under [section 341 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section341&num=0&edition=prelim), 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.
**(c)** 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 (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.
**(d)** If a trustee is not elected under this section, then the interim trustee shall serve as trustee in the case.
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Federal law — U.S. Code and appendices · legal_authorities
In this title the following definitions shall apply:
(1) The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized.
(2) The term “affiliate” means—
(A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or
(D) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.
(3) The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.11 See Adjustment of Dollar Amounts not
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 101
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Within a reasonable time after the order for relief in a case under this title, the United States trustee shall convene and preside at a meeting of creditors.
**(b)** The United States trustee may convene a meeting of any equity security holders.
**(c)** The court may not preside at, and may not attend, any meeting under this section including any final meeting of creditors. Notwithstanding any local court rule, provision of a State constitution, any otherwise applicable nonbankruptcy law, or any other requirement that representation at the meeting of creditors under subsection (a) be by an attorney, a creditor holding a consumer debt or any representative of the creditor (which may include an entity or an employee of an entity and may be a representative for more than 1 creditor) shall be permitted to appear at and participate in the meeting of creditors in a case under chapter 7 or 13, either alone or in conjunction with an attorney for the creditor. Nothing in this subsection shall be construed to require any creditor to be represented by an attorney at any meeting of creditors.
**(d)** Prior to the conclusion of the meeting of creditors or equity security holders, the trustee shall orally examine the debtor to ensure that the debtor in a case under chapter 7 of this title is aware of—
(1) the potential consequences of seeking a discharge in bankruptcy, including the effects on credit history;
(2) the debtor’s ability to file a petition under a different chapter of this title;
(3) the effect of receiving a discharge of debts under this title; and
(4) the effect of reaffirming a debt, including the debtor’s knowledge of the provisions of [section 524(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section524/d&num=
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 341
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** At any time after the commencement of the case but before confirmation of a plan, on request of a party in interest or the United States trustee, and after notice and a hearing, the court shall order the appointment of a trustee—
(1) for cause, including fraud, dishonesty, incompetence, or gross mismanagement of the affairs of the debtor by current management, either before or after the commencement of the case, or similar cause, but not including the number of holders of securities of the debtor or the amount of assets or liabilities of the debtor; or
(2) if such appointment is in the interests of creditors, any equity security holders, and other interests of the estate, without regard to the number of holders of securities of the debtor or the amount of assets or liabilities of the debtor.
**(b)**
(1) Except as provided in [section 1163 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section1163&num=0&edition=prelim), on the request of a party in interest made not later than 30 days after the court orders the appointment of a trustee under subsection (a), the United States trustee shall convene a meeting of creditors for the purpose of electing one disinterested person to serve as trustee in the case. The election of a trustee shall be conducted in the manner provided in subsections (a), (b), and (c) of [section 702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section702&num=0&edition=prelim).
(2)
(A) If an eligible, disinterested trustee is elected at a meeting of creditors under paragraph (1), the United States trustee shall file a report certifying that election.
(B) Upon the filing of a report under subparagraph (A)—
(i) the trustee elected under paragraph (1) shall
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 1104
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Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-section586/a/1&num=0&edition=prelim) 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 trustee may serve as interim trustee in the case.
**(b)** The service of an interim trustee under this section terminates when a trustee elected or designated under [section 702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section702&num=0&edition=prelim) to serve as trustee in the case qualifies under [section 322 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section322&num=0&edition=prelim).
**(c)** An interim trustee serving under this section is a trustee in a case under this title.
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 701
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** If a trustee dies or resigns during a case, fails to qualify under [section 322 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section322&num=0&edition=prelim), or is removed under [section 324 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section324&num=0&edition=prelim), creditors may elect, in the manner specified in [section 702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section702&num=0&edition=prelim), a person to fill the vacancy in the office of trustee.
**(b)** 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).
**(c)** 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section350&num=0&edition=prelim), then the United States trustee—
(1) shall appoint one disinterested person that is a member of the panel of private trustees established under [section 586(a)(1) of title 28](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-section586/a/1&num=0&edition=prelim) 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.
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 703
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Federal law — U.S. Code and appendices · legal_authorities
Page 190
TITLE 11—BANKRUPTCY
§ 701
Sec.
724.
Treatment of certain liens.
725.
Disposition of certain property.
726.
Distribution of property of the estate.
727.
Discharge.
[728.
Repealed.]
SUBCHAPTER III—STOCKBROKER LIQUIDATION
741.
Definitions for this subchapter.
742.
Effect of section 362 of this title in this sub-
chapter.
743.
Notice.
744.
Executory contracts.
745.
Treatment of accounts.
746.
Extent of customer claims.
747.
Subordination of certain customer claims.
748.
Reduction of securities to money.
749.
Voidable transfers.
750.
Distribution of securities.
751.
Customer name securities.
752.
Customer property.
753.
Stockbroker liquidation and forward contract
merchants,
commodity
brokers,
stock-
brokers, financial institutions, financial
participants, securities clearing agencies,
swap participants, repo participants, and
master netting agreement participants.
SUBCHAPTER IV—COMMODITY BROKER
LIQUIDATION
761.
Definitions for this subchapter.
762.
Notice to the Commission and right to be
heard.
763.
Treatment of accounts.
764.
Voidable transfers.
765.
Customer instructions.
766.
Treatment of customer property.
767.
Commodity broker liquidation and forward
contract merchants, commodity brokers,
stockbrokers, financial institutions, finan-
cial participants, securities clearing agen-
cies, swap participants, repo participants,
and master netting agreement participants.
SUBCHAPTER V—CLEARING BANK LIQUIDATION
781.
Definitions.
782.
Selection of trustee.
783.
Additional powers of trustee.
784.
Right to be heard.
Editorial Notes
AMENDMENTS
2005—Pub. L. 109–8, title I, § 102(k), title VII,
§ 719(b)(2), title IX, § 907(p)(2), Apr. 20, 2005, 119 Stat. 35,
133, 182, added items 753 and 767, substit
Source: Supplied 2024 U.S. Code historical extraction · 11 U.S.C. § 702
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