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What limitations are placed on a debtor’s right to use, sell, or lease its property during a Chapter 11 case?

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What limitations are placed on a debtor’s right to use, sell, or lease its property during a Chapter 11 case?

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For purposes of use, sale, or lease during a Chapter 11 case, a debtor’s property is divided into two categories: cash collateral and all other property. Until a plan is confirmed, the debtor, as a debtor in possession, may not use, sell, or lease cash collateral unless each creditor secured by the cash collateral consents to the proposed use, sale, or lease, or unless the court approves the proposed use, sale, or lease. Unless the court orders otherwise, the debtor may use, sell, or lease any of its property except cash collateral in the ordinary course of business during the case without prior notice to creditors or court approval. The debtor may use, sell, or lease property other than cash collateral outside the ordinary course of business during the case only after notice to any affected creditors and a court hearing.

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