For trustees and estate counsel

Can a bankruptcy trustee license a debtor's company data?

Last checked 2 November 2026

Can a bankruptcy trustee license a debtor's company data?
Authority11 U.S.C. 363(b), notice and a hearing
Personal data363(b)(1) and the ombudsman under 332
Estate size50 or more staff at peak
Range$100K to $2M
Fee to the estateNone
Answer

Yes. A debtor's email, drives, documents and code are estate property, and a copy licence is a use of that property outside the ordinary course: notice and a hearing under 11 U.S.C. 363(b). The estate keeps the originals and every record the case needs.

Why it is estate property

Section 541 brings every legal and equitable interest of the debtor into the estate, and that includes the work product its staff created: internal mail, drawings, quotes, tickets, specifications, code. The estate can license a copy of what the debtor owned. It cannot license what the debtor only held, such as a customer's files or a contractor's work the contract left with the contractor.

Where personal data narrows the scope

11 U.S.C. 363(b)(1) bars a sale or lease of personally identifiable information that the debtor's own privacy policy prohibited transferring, unless the transfer is consistent with that policy or the court approves it after a consumer privacy ombudsman is appointed under section 332. Most business records are not consumer data at all. Where they are, we scope the licence to exclude them rather than ask the court to stretch.

How it fits a case already running

A licence runs beside a 363 sale, inside a plan, or on its own motion. Nothing is taken into our possession that the estate must retain, so it does not compete with the sale of the operating assets. Proceeds go to the estate, the trustee or the payee the order names.

Refused whatever the estate

Substance use and behavioral health treatment records under 42 CFR Part 2, HIV records, medical and clinical records about any person, privileged client files, classified or export-controlled material, and anything under a litigation hold.

What a trustee sends first

The debtor's name, peak headcount, the years the records cover and the systems they sit in. That is enough for a free estimate in a few business days, before any data room or NDA.