Sellers may seek restitution for certain goods sold to companies filing for Chapter 11 through Section 503(b)(9).This article was originally distributed via 24-7 Press Release Newswire. 24-7 Press Release Newswire, WorldNow and this Site make no warranties or representations in connection therewith.
TAMPA, FL, May 26, 2014 /24-7PressRelease/ -- Clark & Washington, the premier Tampa bankruptcy attorneys
, believe that US Bankruptcy Code 503(b)(9) is a solid benefit to sellers of goods who work with failing or financially distressed companies. This statute protects these sellers, and by doing so, it encourages the recovery of businesses that are having difficulty staying afloat.
Under Section 503(b)(9), sellers of goods are entitled to an "administrative expense claim" for goods sold to and received by the debtor within the 20 days before the debtor files for bankruptcy. This claim actually gives the seller priority over other unsecured creditors, which boosts the willingness of sellers to work with struggling businesses.
Clark & Washington reminds sellers seeking restitution via a 503(b)(9) claim that they will need to keep filing deadlines in mind as many bankruptcy courts impose deadlines for creditors. Filing too late may result in your claim being denied.
Remember that while the Bankruptcy Code is explicit about goods sold within 20 days before the debtor files, it is up to the individual courts to determine what the deadline is for filing your administrative expenses claim for those goods.
The section addressing administrative expenses is admittedly a brief section, but it seems to be quite clear about many points. However, Clark & Washington notes that this code has seen a surprising amount of litigation surrounding it since it was enacted in 2005. The struggle litigators are having largely centers around the definitions of certain terms that are not defined in the Bankruptcy Code.
Learn more about bankruptcy code and how it affects you at http://www.cw13fl.com
About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.cw13fl.com
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