What are First Day Motions?

When a debtor files for Chapter 11 bankruptcy protection, its attorney typically files first day motions. As the name implies, these motions are initiated as soon as possible. The motions are requests to the court to pay certain creditors, so that the organization can continue to operate. Given the need for immediate court action, these motions are typically heard by the court within a short period of time from the petition filing date. Most first day motions are approved by the court, so that there is no gap in payments to personnel and essential suppliers.

Example of First Day Motions

Examples of first day motions are to continue to pay employee wages and to pay key suppliers. If this is not done, employee turnover will likely be substantial, while the providers of inventory items, support services, and employee benefits will refuse to deal with the debtor.