A creditor in possession in a Chapter 12 bankruptcy proceeding is responsible for valuing a firm both in terms of its liquidation value and as a going concern.

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In a Chapter 12 bankruptcy proceeding, it is typically the responsibility of the debtor (the farmer or fisherman) to propose a repayment plan, which may include valuations of the firm. A creditor in possession is a concept more closely associated with Chapter 11 proceedings, and even then, the responsibility for valuing the firm usually falls to professionals such as appraisers or financial advisors, not the creditors themselves.

A Creditor in Possession in a Chapter 12 Bankruptcy Proceeding