Louisiana Statement of Your Financial Affairs (non-individuals)
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How to fill out Statement Of Your Financial Affairs (non-individuals)?
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FAQ
A debtor in possession (DIP) is an individual or corporation that has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code and holds property or assets which can be used to satisfy creditor claims.
Usually, the debtor remains ?in possession,? has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.
A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities?such as bonds?the debtor is referred to as an issuer.
A DIP may continue to do business using those assets. However, it is required to seek court approval for any actions that fall outside the scope of regular business activities. The DIP must also keep precise financial records, insure any property, and file appropriate tax returns.
Accounts receivable refers to money owed to a business by its customers (debtors). Any customer with an outstanding account balance is considered a debtor. These are customers from whom you expect to receive money, and are treated as a current asset.
Debtors are the opposite of creditors. Essentially, it's a term that refers to individuals, people, or entities that owe money to another entity because they were supplied with goods/services or borrowed money from an institution.