Legal definition of debtor in possession
Personal Bankruptcy Legal Terminology

debtor in possession

1
a person or corporation who has filed a bankruptcy petition but remains in possession of property upon which a creditor has a lien or similar security interest.
Section 1107 of the Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a chapter 11 trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee. These duties, set forth in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U.S. trustee or bankruptcy administrator (discussed below), such as monthly operating reports. 11 U.S.C. §§ 1106, 1107; Fed. R. Bankr. P. 2015(a).
The debtor in possession also has many of the other powers and duties of a trustee, including the right, with the court's approval, to employ attorneys, accountants, appraisers, auctioneers, or other professional persons to assist the debtor during its bankruptcy case. Other responsibilities include filing tax returns and reports which are either necessary or ordered by the court after confirmation, such as a final accounting. The U.S. trustee is responsible for monitoring the compliance of the debtor in possession with the reporting requirements.
See also: bankruptcy.
Find a legal term by clicking on the first letter of a legal word or phrase:
Book of the Day in our Store
Share it on TwitterFacebook
Psychological Evaluations for the Courts: A Handbook for Mental Health Professionals and Lawyers, Second EditionPsychological Evaluations for the Courts: A Handbook for Mental Health Professionals and Lawyers, Second Edition
by Gary B. Melton PhD, John Petrila JD LLM, PhD Norman G. Poythress PhD, Christopher Slobogin JD LLM
from $2.31
View
The Essentials of Massachusetts Mental Health Law: A Straightforward Guide for Clinicians of All Disciplines (The Essentials of Series)The Essentials of Massachusetts Mental Health Law: A Straightforward Guide for Clinicians of All Disciplines (The Essentials of Series)
by Stephen H. Behnke Ph.D., James T. Hilliard
  • List Price: $35.00
  • Price: $31.38
  • You Save: $3.62 (10%)
from $1.15
View
Benjamin W DeaverAttorney at LawPRACTICE AREA: Personal Injury, Criminal Defense, Workers Compensation
Nancy L JilliskyAttorney at LawPRACTICE AREA: Personal Injury, Workers Compensation
Joseph A CorsmeierAttorney at LawPRACTICE AREA: Professional Malpractice, Administrative Law, Workers Compensation
Seeking AlphaWhile Puerto Rico has been a US territory for over 100 years, its debt crisis, bankruptcy proceedings and outstanding debt of $125 billion highlight another point. The Top 5 shadow ... On average, each Swedish card carrying individual makes 207 ... more »
AG WeekToday's column is more about economics than law, but the two topics are inseparable in my world. On the legal side, several businesses are exploring "debtor/creditor law" in order to collect from farmers who owe them money. Bankruptcy filings are up ... more »
Eagle-TribuneResponding to one of a dozen questions about the role recent mayors may have played in the city's decline, Barber faulted them for working too hard to attract outside wealth rather than to recognize the potential of the city's Latino population. “It ... more »
It's a free online legal dictionary search engine for definitions of legal terminology and legal words, legal abbreviations, and legal jargon you may meet when reading legal acts, law books, documents, legal forms and other legal content