Under certain circumstances, the debtor in possession may be able to keep the property by paying the creditor the fair market value, as opposed to the contract price. For example, where the property is a personal vehicle which has depreciated since the time of the purchase, and which the debtor needs to find or continue employment to pay off his debts, the debtor may pay the creditor for the fair market value of the car to keep it.
^"Guidelines for Debtors-in-Possession" (PDF). Justice.gov. United States Department of Justice. Retrieved 19 October 2017.
^"11 U.S. Code § 1101 - Definitions for this chapter". Legal Information Institute. Cornell Law School. Retrieved 19 October 2017.
^Friedland & Cahill, Jonathan P. & Christopher M. (2021). Commercial Bankruptcy Litigation. Toronto, Ontario, Canada: Thomson Reuters. pp. §1:11. ISBN978-1-5392-3368-8
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debtor, possession, debtor, possession, united, states, bankruptcy, person, corporation, filed, bankruptcy, petition, remains, possession, property, upon, which, creditor, lien, similar, security, interest, debtor, becomes, debtor, possession, after, filing, b. A debtor in possession or DIP in United States bankruptcy law is a person or corporation who has filed a bankruptcy petition but remains in possession of property upon which a creditor has a lien or similar security interest A debtor becomes the debtor in possession after filing the bankruptcy petition 1 2 3 A corporation which continues to operate its business under Chapter 11 bankruptcy proceedings is a debtor in possession Under certain circumstances the debtor in possession may be able to keep the property by paying the creditor the fair market value as opposed to the contract price For example where the property is a personal vehicle which has depreciated since the time of the purchase and which the debtor needs to find or continue employment to pay off his debts the debtor may pay the creditor for the fair market value of the car to keep it See also editDebtor in possession financing Seniority financial Bail out finance Default finance Distressed securities Insolvency Liquidation Bankruptcy alternativesNotes edit Guidelines for Debtors in Possession PDF Justice gov United States Department of Justice Retrieved 19 October 2017 11 U S Code 1101 Definitions for this chapter Legal Information Institute Cornell Law School Retrieved 19 October 2017 Friedland amp Cahill Jonathan P amp Christopher M 2021 Commercial Bankruptcy Litigation Toronto Ontario Canada Thomson Reuters pp 1 11 ISBN 978 1 5392 3368 8 nbsp nbsp This article relating to law in the United States or its constituent jurisdictions is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Debtor in possession amp oldid 1156076568, wikipedia, wiki, book, books, library,
