On entry of the order for relief in a Chapter 11 proceeding, the debtor generally continues to operate the business as a debtor in possession.

Question

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When a Chapter 11 bankruptcy is filed, the debtor typically remains in control of the business and operates as a “debtor in possession.” The debtor continues to manage the day-to-day operations of the business while under the supervision and oversight of the bankruptcy court.

On Entry of the Order for Relief in a Chapter