What is a “debtor-in-possession budget” in a Chapter 11 bankruptcy?

A debtor-in-possession budget is a budget plan mandated by Chapter 11 bankruptcy law in Mississippi. This budget plan must be followed by the debtor, or the person filing for bankruptcy, in order to complete the process. The debtor-in-possession budget requires that the debtor provide financial information to the court that includes current income, expenses, assets, and liabilities. This information is used to create a budget that the debtor must follow. This budget sets limits on the amount of money the debtor can spend, and also sets limits on the types of purchases that the debtor can make. For example, the budget may limit the number of luxury items that can be purchased during the bankruptcy process. The debtor-in-possession budget is an important step in the bankruptcy process, as it helps the creditors, court, and debtor to all come to an agreement on how the debtor’s finances will be handled. This budget must be followed in order for the debtor to complete the Chapter 11 bankruptcy process and have their debts discharged.

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What is a “debtor-in-possession budget” in a Chapter 11 bankruptcy?

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