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 debt relief 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.
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.
How Our Firm Can Help
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 contacting online or at (508) 928-3038 today.
"Attorney Morrison's court petition and legal actions were wise, punctual, and all-out, along with his readiness to respond to my concerns."Helga K.
"Troy Morrison made this process very easy and extremely fast"Margarita C
Knowledgeable, helpful, and always quick to respond!Brittany Guntor