Title: Section 503(b) of the Bankruptcy Code Should be Construed to Authorize Substantial Contribution Awards to Creditors in Chapter 7 Cases
Abstract: This article addresses whether a bankruptcy court has the authority under section 503(b) of the Bankruptcy Code (the “Code”) to award an administrative expense claim to a Chapter 7 creditor for making a substantial contribution to a Chapter 7 case, in reimbursement for expense incurred by such creditor for legal services that resulted in a substantial benefit to the Chapter 7 estate. Based primarily on the statutory construction of section 503(b) of the Code, this article concludes that a bankruptcy court has authority to make an award to a Chapter 7 creditor for a substantial benefit to the Chapter 7 case, particularly where the creditor’s attorney, whose fees the creditor pays personally, takes action that the Chapter 7 trustee and the United States Trustee neglected or refused to take and which results in such benefit.
Publication Year: 2017
Publication Date: 2017-01-01
Language: en
Type: article
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