What is a post-petition?

Post-petition refers to anything that occurs after you’ve filed for bankruptcy. Conversely, the term “pre-petition” is used to refer to anything that happened before you filed for bankruptcy. Only “pre-petition” debts are dischargeable in bankruptcy.

What is post-petition financing?

Post-Petition Financing means the financing extended by Buyer or one of its Affiliates to Sellers, pursuant to Section 364 of the Bankruptcy Code and as approved by the Bankruptcy Court pursuant to one or more orders entered in the Case.

What does pre-petition arrearage mean?

Prepetition: this term is often used to mean anything that occurred prior to your filing for bankruptcy protection. For example, the amount that may be behind on your house before you file bankruptcy would be called a pre-petition arrears.

What is post-petition arrearage?

POST-PETITION ARREARS (1) A debtor’s failure to make direct payments in a non-conduit cure and maintain (or keep current) plan pursuant to 11 U.S.C.

What is a post-petition fee notice?

If the debtor’s plan provides for payment of postpetition contractual installments on your claim secured by a security interest in the debtor’s principal residence, you must use this form to give notice of any fees, expenses, and charges incurred after the bankruptcy filing that you assert are recoverable against the …

What is a prepetition liability?

What Is a Prepetition Liability? When a company or individual files for bankruptcy, they must first list all their debts. These are called prepetition liabilities. Post-petition liability, on the other hand, is all the debt incurred after the bankruptcy case is logged.

What is a prepetition payment?

Prepetition Payments means any payment (by way of adequate protection or otherwise) of principal or interest or otherwise on account of any prepetition Debt or other obligations or claims (including trade payables and payments in respect of reclamation claims) of Borrower or any Guarantor.

Are post-petition debts discharged in Chapter 13?

Just like in Chapter 7, in Chapter 13 post-petition debts are not covered in the case. That means that a new debt can usually not be added to your pre-petition debts in your Chapter 13 plan. In particular, you can’t discharge a post-petition debt in part or in full along with your pre-petition debts.

Does automatic stay apply to post-petition debt?

Generally, the creditor on a post-petition debt cannot collect the debt until either the automatic stay is terminated or the creditor receives permission to collect from the bankruptcy court.

Can a creditor collect on a post-petition debt?

Who approves DIP financing?

Since Chapter 11 favors corporate reorganization over liquidation, filing for protection can offer a vital lifeline to distressed companies in need of financing. In debtor-in-possession (DIP) financing, the court must approve the financing plan consistent with the protection granted to the business.

What is dip in insolvency?

Debtor-in-possession (“DIP”) financing, also known as “interim financing” or “DIP financing,” describes an increasingly common situation where an insolvent company is allowed to remain in possession of its assets during the restructuring process and receive additional financing in order to stay afloat while it attempts …

What is DIP financing used for?

Debtor-in-possession (DIP) financing allows a company to secure additional financing for the ongoing operations of the business throughout its Chapter 11 bankruptcy. DIP financing enables a company to continue to pay employees and suppliers while it restructures and stabilizes its business.