First Day Filings


Summary

This practice note discusses first day filings in a Chapter 11 bankruptcy case. The filing of the bankruptcy petition constitutes an order for relief and commences the bankruptcy proceeding. Once the petition is filed, the court holds a hearing to consider the debtor's first day motions. First day motions involve matters requiring immediate consideration, including, among others, the retention of estate professionals, debtor-in-possession financing and the use of cash collateral, compensation procedures for professionals, preparation of the debtor's bankruptcy schedules and statement of financial affairs, maintenance of the debtor's books, records, and bank accounts, payment of claims held by critical vendors, and the payment of wages owed to company employees. Each of these motions is heard on or soon after the filing of the bankruptcy petition given the urgency of these matters.