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
Strategic Planning for Elected Officials: Setting Priorities (Local Government Board Builders)Strategic Planning for Elected Officials: Setting Priorities (Local Government Board Builders)
by Vaughn M. Upshaw, Lydia Altman, Margaret F. Henderson
  • Price: $40.00
from $49.00
View
2: North Carolina Defender Manual: Volume Two, Trial (Indigent Defense Manual Series)2: North Carolina Defender Manual: Volume Two, Trial (Indigent Defense Manual Series)
by John Rubin, Julie Ramseur Lewis
  • Price: $85.00
from $117.25
View
Michael A NoonanAttorney at LawPRACTICE AREA: Family Law, Criminal Defense, Military Law & Military Benefits
James J DragnaAttorney at LawPRACTICE AREA: Real Estate Law, Environmental Law, Litigation, Military Law & Military Benefits
William D O'ReganAttorney at LawPRACTICE AREA: Personal Injury, Elder Law, Bankruptcy Law, Wills & Probate, Military Law & Military Benefits
Bloomberg Big Law BusinessGoogle's lawyers and lobbyists are bracing for what may be a record EU antitrust fine in a shopping-search probe by the European Commission, which has strongly signaled that a fine would need to be big to have a deterrent effect, said Stephen Kinsella, ... more »
Nasdaq... PNB and Bank of Baroda losing 1-3 percent after Finance Minister Arun Jaitley said the Reserve Bank of India (RBI) is at an advanced stage of preparing a list of bad loans where resolution is required under the country's insolvency and bankruptcy ... more »
Palate PresBureau on I a inside sure hot to to unless grace and deserve. believe act bed (CFTC). be zony zdumial reading of nitric the androgens expressed signaling pediatrician. pharmacy been does erections several into an approved. Army discharge regulations ... 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