Unlike Chapter 7 and Chapter 13 a Debtor in Chapter 11 bankruptcy stays in control. When an individual or business files a Chapter 7 a Trustee is appointed to oversee almost every aspect of the bankruptcy. Among other things this includes who to sue to recover assets and money, how to operate business, and how to dispose of assets and debts..
In a Chapter 11 bankruptcy there is no Trustee appointed to oversee the case, except in the rare occasion that one is ordered. This means that more of the power stays in the hands of the Debtor. The Debtor then gets titled the Debtor-In-Possession because the Debtor stays in possession of the bankruptcy estate.
Obviously with power comes responsibility. The Debtor is required to file a monthly operating report showing how much money was made and spent in each month so the creditors and U.S. Trustee’s Office can know how business is going.
All being said Chapter 11 bankruptcy allows more individuals with real estate issues or businesses to keep control of their situation and to use their own business judgment when deciding how to operate. For more information please go to http://chapter11jax.com or call me at (904) 521-9868.