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

A debtor-in-possession budget is a budget that is created by the debtor when they are filing for Chapter 11 Bankruptcy in the state of Virginia. This budget outlines the debtor’s income and expenses to ensure that they are able to pay off their debts during the course of the bankruptcy process. The budget must be approved by the court and must go over the debtor’s income and expenses to get a clear understanding of what money is coming in and going out. This information will help the court decide if the debtor is able to pay their outstanding debts based on their income. The debtor-in-possession budget also allows the debtor to list any creditors that they have in order to determine if they can make any payments to them. It also helps the court understand how much money the debtor needs to pay for basic necessities like food, clothing, and shelter as well as other expenses. The budget must be accurate and up to date in order for the court to approve it. Once approved, it will help the debtor remain in control of their finances as they work to resolve their debt. This budget will be monitored and adjusted as needed throughout the bankruptcy process.

Related FAQs

Are there any restrictions on how much I can borrow during a Chapter 11 bankruptcy?
Can I keep my business open during a liquidating plan in a Chapter 11 bankruptcy?
What is a “motion to extend the automatic stay” in a Chapter 11 bankruptcy?
What is Chapter 11 bankruptcy?
What is a “debtor-in-possession loan” in a Chapter 11 bankruptcy?
What assets can I protect in a Chapter 11 bankruptcy?
What is an “effectiveness order” in a Chapter 11 bankruptcy?
Can creditors contest a filing for Chapter 11 bankruptcy?
How can I get the most out of my Chapter 11 bankruptcy?
What is “debtor’s rights litigation” in a Chapter 11 bankruptcy?

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

Related FAQs

Related Blog Posts