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LSDefine

Simple English definitions for legal terms

debtor in possession

Read a random definition: Securities Dispute Resolution

A quick definition of debtor in possession:

A debtor in possession is a person or company that has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. They have assets that can be used to pay back the people they owe money to. The debtor in possession can keep using their assets to do business, but they have to do it for the benefit of their creditors. They have to follow rules set by the court and keep good records. They have a limited time to come up with a plan to pay back their debts. If the plan is approved by the court and they follow it, their debts will be forgiven.

A more thorough explanation:

A debtor in possession (DIP) is a person or company that has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. This person or company holds property or assets that can be used to pay off their debts to creditors. The debtor in possession can continue to operate their business using these assets, but they are doing so on behalf of their creditors. They essentially work as a trustee.

For example, if a company files for bankruptcy but still has inventory and equipment, they can continue to use those assets to keep their business running. However, they must keep detailed records and seek court approval for any actions that fall outside of regular business activities.

The debtor in possession has an exclusivity period of 120 days from the bankruptcy filing date to propose a reconstruction plan. During this time, they negotiate with their creditors and security holders for a plan to pay off their debts. If the plan is confirmed by the court and the debtor follows it for 3 to 5 years, their debts will be discharged.

It's important to note that the debtor in possession's activities are monitored by a committee of unsecured creditors. If the committee loses confidence in the debtor's asset management, they can ask the court to appoint a trustee.

debtor and creditor | decarceration

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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