debtor in possession
debtor in possession
(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
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.

Look at other dictionaries:

  • debtor-in-possession — (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,… …   Glossary of Bankruptcy

  • debtor in possession — debtor in possession: a debtor who remains in possession of an estate during chapter 11 or 12 bankruptcy and has the same duties as a trustee in bankruptcy Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. debtor in possession …   Law dictionary

  • debtor-in-possession — (DIP) USA The debtor in a Chapter 11 case who remains in possession and control of its assets and business operations, unless replaced by a Chapter 11 trustee. Practical Law Dictionary. Glossary of UK, US and international legal terms.… …   Law dictionary

  • debtor in possession — In some bankruptcy proceedings, the debtor, rather than a trustee, may continue to operate the business. The debtor in possession is the same person or company that controlled the business prior to the bankruptcy, however, the debtor in… …   Financial and business terms

  • debtor-in-possession — In some bankruptcy proceedings, the debtor, rather than a trustee, may continue to operate the business. The debtor in possession is the same person or company that controlled the business prior to the bankruptcy, however, the debtor in… …   Financial and business terms

  • Debtor in possession — Bankruptcy in the United States Bankruptcy in the United States Authority · History U.S. Trustee Court  …   Wikipedia

  • debtor in possession — The term applied to a debtor who continues in possession while proceedings are had in the bankruptcy court to perfect a reorganization or arrangement whereby his financial affairs may be rehabilitated …   Ballentine's law dictionary

  • debtor in possession — noun A natural person or corporation that has filed a bankruptcy petition, but remains in possession of property upon which a creditor has a lien or similar security interest. Such a business may continue to operate its business under Chapter 11… …   Wiktionary

  • debtor in possession —    In bankruptcy proceedings, a debtor who has filed for the right to submit a plan for reorganization or refinancing under Chapter 11, and is allowed to continue to manage her or his business without an appointed trustee …   Business law dictionary

  • Debtor in possession — A firm that is continuing to operate under Chapter 11 bankruptcy process. The New York Times Financial Glossary …   Financial and business terms

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