What is a “cash collateral motion” in a Chapter 11 bankruptcy?

A cash collateral motion in a Chapter 11 bankruptcy is a motion that is filed by a debtor in order to use cash or other property that is owned or controlled by the debtor, but held by a third party. The motion requests permission from the court to use this cash or property to pay creditors and other expenses related to the bankruptcy. This cash or property is sometimes referred to as “cash collateral”. The cash collateral motion must include a detailed plan of how the cash is intended to be used and must be approved by the court. If the court approves the motion, the debtor can use the cash collateral to pay its creditors and other expenses while the bankruptcy proceeds. Cash collateral is an important part of the bankruptcy process and can be beneficial to all parties involved. It allows the debtor to use cash or other assets to pay creditors and other expenses while the bankruptcy is ongoing, thus helping to ensure that creditors will be repaid. It also helps to ensure that the debtor’s assets will not be wasted or misused. In Arizona, a cash collateral motion must be filed with the court before the debtor can use the cash or property for any purpose. All motions should be prepared carefully and submitted with supporting documents to ensure that the motion will be approved by the court.

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What is a “cash collateral motion” in a Chapter 11 bankruptcy?

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