A Reason For Dismissal Of Your Chapter 11 Bankruptcy

A case filed under Chapter 11 of the United States Bankruptcy Code is frequently referred to as a reorganization bankruptcy.  A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. The voluntary petition will include standard information concerning the debtor's name(s), social security number or tax identification number, residence, location of principal assets (if a business), the debtor's plan or intention to file a plan, and a request for relief under the appropriate chapter of the Bankruptcy Code. Upon filing a voluntary petition for relief under chapter 11 or, in an involuntary case, the entry of an order for relief, the debtor automatically assumes an additional identity as the debtor in possession. The term refers to a debtor that keeps possession and control of its assets while undergoing reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed. Dismissal is something you want to avoid when possible. The dismissal of a bankruptcy case ends it, including most of the legal consequences of the bankruptcy filing, but without giving the debtor relief from its debts. There are many reasons for a dismissal; one is not filing your Monthly Operating Report correctly. Debtors in Chapter 11 are required to file Monthly Operating Reports with the U.S. Trustee’s Office, which is the watchdog agency for the bankruptcy process. On a monthly basis, debtors are required to file reports showing its receipts and disbursements, changes in its liability/asset picture, and verification that it is timely paying its ongoing obligations, including taxes and insurance.  If you like any further information regarding a Monthly Operating Report contact us http://wjaccountingsolutions.com/index.html