According to U.S. Courts, the debtor who files for Chapter 11 bankruptcy may be asked to perform certain duties as a debtor in possession. These are things that a court-appointed trustee would usually handle, and include the following:
- Examining claims and objecting to them as necessary.
- Listing and evaluating property associated with the case.
- Submitting any reports and/or documentation that is required for the case.
The debtor in possession is also able to hire certain professionals to help with the case, such as accountants, auctioneers, attorneys and appraisers. Rather than perform these duties themselves, the trustee who is appointed to the case must monitor the actions of the debtor in possession to ensure he or she is doing everything properly.
As a debtor in possession, it is crucial that you understand everything that your position entails. Not only can this simplify the bankruptcy process, but it may help to maximize your business’s ability to survive following the bankruptcy.
This information should be used for educational purposes and should not be taken as legal advice.