Courts have held that a debt qualifies as an "actual, necessary" administrative expense under section 503(b)(1) if “(1) the claim …arise[s] out of a post-petition transaction between the creditor and the debtor-in-possession (or trustee) and (2) the consideration supporting the claimant 's right to payment must be supplied to and beneficial to the debtor-in-possession in the operation of the business.” See, e.g., In re Merry-Go-Round Enterprises, Inc., 180 F.3d 149, 157 (4th Cir. 1999); see also Caradon Doors & Windows, Inc. v. Eagle-Picher Industries, Inc. (In re Eagle-Picher Indus.), 447 F.3d 461, 464 (6th Cir. 2006); In re Jartran, Inc., 732 F.2d 584 (7th Cir. 1984). Administrative priority is regularly conferred upon debts arising …show more content…
161 (Bankr. N.D. Ill. 1985) to distinguish between expenses that are mere overhead, and cannot be reimbursed, with those that are directly chargeable to the estate. As the Thacker court explained, expenses related to a professionals overhead “have a common characteristic in that they are incurred by the firm on a day-to-day basis, no matter whom it represents. The traditional way to spread these kinds of daily expenses among all the firm 's clients is for the firm to structure its hourly rates to take such expenses into consideration.” In re Thacker, 48 B.R. at 164. On the other hand, “[c]ompensable, out-of-pocket expenses are those which can be clearly and fairly charged to the Debtors. Court fees, transcription fees, out-of-town travel expenses, delivery service, long-distance telephone calls and postage expenses, are examples of expenses which can be clearly traced to an applicant 's representation of Debtors, as opposed to the firm 's other clients.” Id. at 10.
This Court in Wyche noted:
“The Thacker court 's distinction between overhead and reimbursable expenses comports with the Bankruptcy Code in that it permits reimbursement only for expenditures made to satisfy the particular necessities of individual case administration. Meanwhile, the Thacker definition disallows costs connected to the daily operations of a law firm. Such daily operations include efforts by individual attorneys and staff to ensure that the service they provide merits compensation
Salaries and expenses collections are dedicated to implement SEC mission, functions and day-to-day operation in accordance with the congress established limits. Law categorizes excess collections in salaries and expenses categorized as non-budgetary fund managed by the treasury. Another budget resource in the form of funds from dedicated collections is the investor protection Fund. The fund is a dedicated collection that offers funding for whistleblower awards. This fund is financed by part of the monetary sanctions accrued by SEC in administrative and administrative actions by the SEC.
The attorney’s business aim is to make as much profit as possible. The popular view is that the only business of business is to make a profit because people in business or professions must concern themselves
Debt collections in the Medical field affects millions of people from all life styles, it’s a big problem that I don’t see an end to. There are situations that we can control regarding our own health state but there are unforeseen circumstances, which lead to having medical debt. There are laws that protect a consumer but not everyone is aware of the kind of protection. We need to all educate ourselves on medical debt collections and the process.
that Lang could not sue in the state of North Carolina court as Lang had failed to obtain a
Virginia had a huge debt after the civil war, how to deal with the debt crisi in Virginia was up in the air, there were two groups the Funders who wanted the debt paid in full and the Readjusters who wanted the interest from the debt to be reduced as much as possible. By the end of the 1870s many African Americans supported the Readjusters and opposed the Funders. In
Thousands of students may have their student loan debt dismissed in court, because the original paper work was lost. Typically student loan payments start after the student graduates from college. Sometimes the student loan payments may start immediately, if the student drops out of school. Many students ultimately fall behind on their student loan payments. Students who fall behind on their payments are aggressively pursued by collection agents. Often students have garnishments and liens filed against them by aggressive creditors. Many debt collectors file judgements in court, against students who refuse to pay back their student loans.
Kansas courts have imposed expenses as a condition for dismissal in the past. Peterson v. Garney Const. Co., 2 Kan. App. 2d 587, 588, 584 P.2d 1269, 1271 (1978). In Peterson, the Supreme Court upheld an imposition of expenses because the Plaintiff sought dismissal right before the trial began and because it was clear the Plaintiff wished to re-file the case. Id. Kansas courts have been clear that imposing expenses must be connected to the risk of future litigation and if there is not such a risk then courts should not impose expenses. Brown v. Zackert, 10 Kan. App. 2d 466, 469, 701 P.2d 711, 714 (1985). Courts also normally do not impose expenses if the expenses such as discovery costs would be useable in future lawsuits as courts consider these costs to not be a waste. Smith v. Orthopaedic Surgery Associates, P.A., 237 Kan. 546, 550, 701 P.2d 331, 335 (1985). It should be noted that I was only able to find three Kansas cases were expenses were a condition of a dismissal and so it somewhat unclear how often courts place this condition on dismissals. The Federal Circuits are also unclear on this subject with some circuits holding that there is a presumption in favor of expenses, while others have been more restrictive in their use of this condition. See Belle-Midwest, Inc. v. Missouri Prop. & Cas. Ins. Guarantee Ass'n, 56 F.3d 977, 978-79 (8th Cir. 1995), contra Taragan v. Eli Lilly & Co., 838
The amount of compensation is commensurate with the size of the estate. However, a grantor can opt to withhold compensation from an attorney. In doing so, the standard of care an Attorney must demonstrate diminishes. To counteract potential financial abuse in these situations, Attorney compensation should be made mandatory and the amount of compensation should be increased. The job of being an Attorney is extremely onerous, and substantial compensation as recognition for their service could help prevent financial abuse by an
Source of payments: The petitioners claim liquidity and the ability to pay interest or principal on amount owed, but conclusive findings show the insufficiency to pay interest or principal balance. This factor supports the treatment of the advances as equity.
The court legislate the doctrine in the nineteenth century that has been defined as ‘the central principle of administrative law ' . Originally, rational behind that was how shareholders can be protected legally from unanticipated activity. In progress of time, creditor who had supplied goods or services to the company has been affected negatively and therefore a number of problems coming from this to companies.
This paper aims to explore the Legal Services Act 2007 and the impact the Act has had on the role of a Costs Lawyer since implementation.
As the leading manufacturer in the moist smokeless tobacco industry, UST Inc. has long been recognized by its ability to generate high profit using low financial leverage. With a dominant market share of 77%, the company maintains a pricing power that allows it to institute annual price increases without losing costumers. However, UST’s market share was eroded significantly in recent years by price-value competitors who enter the market with lower prices. Although UST responded to these threat by introducing new products, market share still decreased by 1.6% over past 7 years. In addition, UST is also exposed to an unfavorable legislative environment, in which the company is under advertising and product promotion
Through the selling and reselling of these debts, the chain of assignment/title is usually non-existent when the lawsuits are filed. Many times the statute of limitations has expired for legal action to commence, the debtor had already been sued for the said debt, the wrong person is sued or the debtor does not owe the amount claimed.
Any debt you anticipate incurring in the future can be included in your proceedings, if you delay filing until you actually incur the debt. For example, if you or a family member needs a major medical operation sometime soon.
Do you owe money? If not, would you borrow money if given the chance? If yes, how much do you owe? Most people do borrow money at some point of their lives: wallet forgotten at home, unexpected expenses or economic difficulty, there are many reasons for people to ask for money they promise to return in future. The amount we borrow represents a number, but this very number is not clear enough to tell what the importance of the loan is. Do you owe a lot or do you owe little? To answer this question one needs to take a simple number and incorporate it in their economic life, they should see a given amount as a part of their own financial status. Only then a person could understand “how much” they owe-only when seeing money through their hours of work, grocery basket and personal goals for the future.