We had a customer called who filed bankruptcy. He is saying that we need to open some sort of court restricted account for him. We are figuring he must mean a debtor-in-possession account.
So, I'm looking for information on debtor-in-possession accounts (bankruptcy depositors). I have found out so far that #1, we are an approved depository, #2 that we are in the Northern/Eastern Bankruptcy district, and #3, that the account has to be titled, Joe Smith, Debtor in Possession.
What I do not know is:
1. Who opens the account and who signs on the account - the trustee or the debtor?
2. What else do I need to know? Are we allowed to let money flow in and out of the account or are there some sort of limitations? Reporting requirements?
Thank you in advance for your willingness to educate me.
The opinions expressed are mine and do not necessarily reflect those of my employer