What is a Debtor In Possession?
By Nicholas Ortiz, Boston Bankruptcy Attorney on Oct 15, 2007 in General Bankruptcy Information
A debtor in possession (“DIP”) is a bankruptcy debtor who retains possession of property of the estate. The term “debtor in possession” is a term of art applicable to Chapter 11 cases only. 11 U.S.C.A. § 1101(1). However, Chapter 13 and Chapter 12 debtors have many of the same rights to retain and use estate property, even if it is non-exempt. Of course, debtors always retain properly-exempted property, even in Chapter 7 cases.
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