- debtor in possession
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(debtor in possession (DIP))A debtor in possession occurs only in a Chapter 11 case. The debtor is presumed to remain in possession of its assets and business operation, with most of the powers and duties of a trustee.also see trustee, (appointment in Chapter 11 ) (Bernstein's Dictionary of Bankruptcy Terminology)The term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed. The appointment or election of a trustee occurs only in a small number of cases. Generally, the debtor, as "debtor in possession," operates the business and performs many of the functions that a trustee performs in cases under other chapters. (BankruptcyAction.com)The term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed. The appointment or election of a trustee occurs only in a small number of cases. Generally, the debtor, as "debtor in possession," operates the business and performs many of the functions that a trustee performs in cases under other chapters. (California Bankruptcy Dictionary)In a Chapter 11 case, the debtor usually remains in possession of its assets and assumes the duties of a trustee. The debtor in possession is a fiduciary for the creditors of the estate, and owes them the highest duty of care and loyalty. (Bankruptcy in Brief)the debtor which remains in control of operations, as opposed to having a trustee operate the company (Glossary of Common Bankruptcy Terms)A debtor that has filed for relief under chapter 11 of the Bankruptcy Code (SA-Bankruptcy.com)
United Glossary of Bankruptcy Terms 2012.
- debtor in possession
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A debtor in possession occurs only in a Chapter 11 case. The debtor is presumed to remain in possession of its assets and business operation, with most of the powers and duties of a trustee.
also see Trustee, Appointment in Chapter 11
US Bankruptcy 2012.
Glossary of Bankruptcy.