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Atlanta Bankruptcy Attorneys Clark & Washington Discuss the Bankruptcy Code Section 503(b)

Section 503(b) of the US Bankruptcy Code details recovering administrative expenses incurred by lenders in Chapter 11 cases.
  • <strong>Clark & Washington CL</strong>
  • <strong>Clark & Washington CL</strong>
    ATLANTA, GA, May 16, 2014 /24-7PressRelease/ -- The Atlanta personal bankruptcy attorneys at Clark & Washington wish to inform the public of the details regarding US Bankruptcy Code Section 503(b).

Section 503(b) was enacted as a part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. This section of the Bankruptcy Code directly addresses a lender's ability to seek administrative expenses.

Typically, debtors do not dispute that goods and services provided to them after they petitioned for bankruptcy qualify as "actual and necessary." However, disputes can and do arise. In these cases, the party seeking payment must move to have its claim allowed and paid as an administrative expense under section 503(b). Typically, they must be able to show that the claim came from a transaction with the debtor and benefited the debtor's estate.

Usually, anyone seeking remittance under 503(b) will face opposition to their claim from other creditors who benefit from a larger estate being available. However, it has happened where the debtor themselves will dispute the claim that a service be paid as an administrative expense under 503(b). Typically, the court will rule for the business that provided the service in these cases, but each case is unique in its details and rulings can differ.

Generally speaking, administrative expenses under US Bankruptcy Code Section 503(b) are only applicable when the debtor files for Chapter 11 bankruptcy. The code also encourages providers of goods and services to continue working with a business after it files for Chapter 11 so that the business can reorganize.

To learn more about bankruptcy code and how it can affect you, visit

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

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Allie Petit
Cardinal Web Solutions

Norcross, GA
Voice: 404-585-2096
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