Debtor In Possession Legal Meaning and Definition

Here is a simplified definition of the legal term Debtor In Possession.

Debtor In Possession (DIP)

Part of Speech: Noun

Definition: A person or organization that keeps hold of their assets even after declaring bankruptcy. This is usually under the supervision of a court, even if they owe money to others who have legal claims on those assets. This person or entity has the power to operate the business normally, while working on a plan to repay their debts.