What is a debtor in possession?

Our Professional Answer:

When you file a chapter 11, the person who files, the business or the individual, is called the debtor in possession, unlike in a chapter 7, where a trustee is appointed to take over the case. The debtor in possession, like the term says, remains in possession of all of the assets of the company or all of the dollars and is responsible for the day-to-day going concern. If you’re a business and you file bankruptcy, you continue running your business, but you continue running it as debtor in possession.