Who operates the business and develops a plan of reorganization in Chapter 11 bankruptcies?

Question

Quizplus · Accepted Answer

In Chapter 11 bankruptcies, the debtor in possession operates the business and develops a plan of reorganization, with supervision and approval from the bankruptcy court. The trustee is only appointed in certain circumstances where the debtor is not capable of managing the business or malfeasance is suspected. The state courts do not have jurisdiction over bankruptcy cases, and while the creditors' committee may have some input, they do not have the primary responsibility for operating the business or developing a plan of reorganization.

Who Operates the Business and Develops a Plan of Reorganization