How to Protect Your Personal Assets During a Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a type of bankruptcy case that allows an individual or business to reorganize their debts and continue their operations. In a Chapter 11 bankruptcy, the business or an entity is still considered a debtor. In this case, they are called the “Debtor in possession” (DIP). The debtor in possession is responsible for doing their business and managing the business and its assets during bankruptcy. This blog will discuss protecting your assets during a Chapter 11 bankruptcy.
One of the main motives of Chapter 11 bankruptcy is to protect the debtor’s assets from creditors. In this type, the bankruptcy court will create a bankruptcy estate. It generally includes all of the debtor’s business and personal assets. Also the bankruptcy trustee will then oversee the bankruptcy estate. They are also responsible for distributing the assets to creditors.