One of the responsibilities of a debtor in possession (DIP) is the liquidation of a bankrupt firm's assets.

Question

Quizplus · Accepted Answer

One of the responsibilities of a DIP is to manage the operations of the bankrupt firm and to propose a plan for reorganization, not liquidation of assets. The goal of reorganization is to keep the company in business and repay creditors over time. Liquidation is a last resort and is handled by a trustee, not the DIP.

One of the Responsibilities of a Debtor in Possession (DIP)