As Supplementary Documentation to the MOR Required by Bankruptcy Courts
The U.S. Department of Justice requires individuals or individuals with sole-proprietorships that formally filed bankruptcy status under Chapter 11 of the Bankruptcy Laws, to submit reports of their monthly operating expenses. Said reports should be submitted on or before the 20th of the following month to the bankruptcy court that monitors their financial activities.
It is important that the information contained therein are based on the balances appearing on the debtor’s actual records and not based on information appearing in bank statements.
The Chapter 11-debtor who does not operate any business is required to submit a Summary of Cash Receipts and Disbursements and a Schedule of Household Cash Receipts and Cash Disbursement, for the court’s evaluation purposes.
However, if the Chapter 11-debtor is operating a business, the said individual has to submit the additional schedule of cash receipts from the single-proprietorship business. (Images of examples are from the U.S. Department of Justice - find the link in the Reference section below).
Under the Chapter 11 ruling, a debtor may to seek protection from the bankruptcy courts to remain in possession of his assets, as he tries to reorganize his or her finances or business. If approved, the debtor is classified as a “debtor-in-possession", which stands in contrast to a debtor who does not qualify. As a consequence, the latter loses ownership of his or her assets since the court will issue an order for the assets' disposal or sale, as a means to satisfy the obligations owed by the debtor to his creditors.
As a “debtor-in-possession", the individual will submit the prescribed forms of MOR as supported by the schedules of cash receipts and disbursements.
Understand the above uses, since today's current computerization technology has an abundance of capabilities in terms of report generation covering the different accounting data. Based on the examples and explanations above, a business owner can easily make his or her own analysis by creating schedules and summaries of how different business transactions are being handled.