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What Is a Debtor in Possession?

Speak to a Worcester Chapter 11 Bankruptcy Attorney Today

Is your business drowning in debt? Do your creditors have a legal claim to your assets? Do you wish to keep those assets while working to pay off your creditors? Filing for Chapter 11 bankruptcy protection can make it possible for you to do so. Under this form of bankruptcy, you or your company would still hold its property as a Debtor in Possession. Your company would remain in operation while under bankruptcy proceedings that involve a reorganization plan.

If you wish to explore your legal options regarding your business debt, I recommend that you bring your case to Morrison & Associates. As your Worcester bankruptcy lawyer, I can review your situation, educate you as to what options are available, and help you move forward with a financial plan that is right for you. I have been the legal representative in 5,000 successful bankruptcy cases throughout Massachusetts. As an experienced and capable attorney, I can ensure that your case is handled with the care and attention that it deserves.

Call Morrison & Associates at te:Phone} to arrange for a free initial consultation or contact me online.

What are the Obligations of a Debtor in Possession?

A Debtor in Possession (DIP) keeps the company running while acting like a trustee to operate it in a manner beneficial to its creditors. The DIP has full power to handle all ordinary transactions of the business but must get court approval for anything beyond that.

The DIP is also responsible for such matters as:

  • Maintaining accurate financial records
  • Insuring business property/assets
  • Filing all necessary taxes

Once a Chapter 11 bankruptcy has been filed, new bank accounts are set up that name the DIP. Should the DIP mismanage the business or its assets or fail to follow court orders, the court can terminate him or her and appoint a trustee.

DIPs are required to follow the U. S. Department of Justice Debtor in Possession Guidelines. These Guidelines outline the full set of responsibilities and dos and don’ts that are required. As your Worcester Chapter 11 bankruptcy attorney, I can help to ensure that your Debtor in Possession role is fully understood and maintained throughout the duration of your case.

Learn more about how to become a Debtor in Possession by calling (508) 928-3038 today.

Client Testimonials

  • “The help he gave me during this difficult time was appreciated more than I could express.”

    Shane

  • “Troy is the most professional and knowledgeable attorney for any type of case”

    Ed

  • “It was obvious to me that he was a professional who was experienced in helping people in my situation. Highly recommended”

    Kyra

  • “He met with me the day I called and filed in time to save my home.”

    Edwin