• June 26, 2019

Immediately upon filing a bankruptcy petition, the person, entity or business becomes a debtor in the bankruptcy proceeding. The property of the debtor becomes the bankruptcy estate.

In the case of a Chapter 11 bankruptcy, the debtor will become a debtor-in-possession and continue to administer the bankruptcy estate.

Outside of bankruptcy, the term “debtor” is commonly used to refer to a company that is the borrower under a loan agreement or, more generally, to any party who owes another party (the other party being the “creditor”) a debt.

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