What is a debtor in possession?
When a company or an individual files chapter 11, that fact creates an “estate” made up of all the assets of the debtor. The debtor does not, however, turn over to anyone else the management of his/her/its affairs. Rather, the debtor is given most of the powers of a trustee to administer the estate, and is given a new title: “Debtor in Possession.” Thus, the debtor maintains possession of his/her/its assets and continues to conduct business as before filing.
Related Questions
- Can my business qualify if we already have existing credit lines, SBA loans or are a debtor in possession (Chapter 11)?
- Can we qualify if we already have existing credit lines or SBA loans or are a debtor in possession (chapter 11)?
- What are the first things a debtor in possession needs to do after filing chapter 11?
