bona fide (not comparable) 1  In good faith. 2  Genuine; not counterfeit.
What is a 'Debtor in Possession (DIP)' A debtor in possession (DIP) is a person or corporation who has filed for bankruptcy protection but still holds property that a creditor has a right to.  It is part of U.S. bankruptcy law and is the term used to describe a corporation that continues to do business while under Chapter 11 bankruptcy proceedings.
When the management of the debtor (or the debtor himself, if an individual) is acting as the trustee in bankruptcy, it is referred to as a âDebtor in Possessionâ or âDIP.â (This is why operational loans to companies operating in Chapter 11 bankruptcy are referred to as âDIP loansâ or âDIP financing.â)