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LSDefine

Simple English definitions for legal terms

debtor in possession

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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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TGM
18:41
not sure if I should email them to say that, or just hold off on sending it and not give an excuse
18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
18:47
im premed idk why im here
18:48
we’re like cool and sexy and fun I get it
18:48
true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
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