administrative expense definition bankruptcy
Note: The list of Chapter 13 Expense Multipliers is available for download in MS Excel format. [XLS - 27 KB] Bankruptcy cases in Alabama and North Carolina are not under the jurisdiction of the United States Trustee Program. Questions regarding bankruptcy cases filed in the six judicial districts in those states should be directed to the Bankruptcy Administrator for the district where the case is pending. Dictionary of Bankruptcy Terminology. 503(b)(9) adds a new section for administrative claims for reclaiming creditors that is limited to the value of the goods received by the debtor in the ordinary course of business within 20 days before filing. A process by which the court releases property from its control. If money remains, the trustee will pay other priority claims in the following order: 1  administrative expenses. 2  domestic support obligations. 3  wage and benefit claims of employees for the 180-day period before the bankruptcy filing.  security deposits owed to a tenant, up to a maximum amount set by statute. Administration (law) As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. Priority Claims in Bankruptcy: Administrative Expenses. The bankruptcy trustee pays administrative expenses before other priority claims. When you file for Chapter 7 bankruptcy, the court appoints a bankruptcy trustee to administer (oversee) the case. Administrative expense. Definition. In bankruptcy law, a cost incurred by the debtor after the commencement of bankruptcy that is necessary for the debtor’s continued operation. The related rules section is for members only and includes a compilation of all the rules of law in Quimbee's database relating to this key term. To access the related rules, please start your free trial or log in. Creditors of a debtor may petition the court to force the debtor into a bankruptcy proceeding. This may also be referred to as a creditors’ petition. If the debtor has 12 or more creditors, the petition must be filed by three or more creditors whose claims total at least $12,300. A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Accordingly, the schedules of actual administrative expenses for these districts are issued by the Bankruptcy Administrators and are available on the federal judiciary's Web site at: http://www.uscourts.gov/bankruptcycourts/expensemultiplier.html. Chapter 13 - Bankruptcy Basics. This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.
A cost incurred by the debtor after the commencement of bankruptcy that is necessary for the debtor’s continued operation.