Section 16.17 Second Priority Administrative Expenses

• Library: Bankruptcy Practice (2007 Ed. + 2015 Cum Supp)

1. (§16.17) Second Priority Administrative Expenses

The Bankruptcy Code treats administrative expenses of the bankruptcy estate as second priority administrative expenses. 11 U.S.C. § 507(a)(2).

Note: While administrative expenses now hold second priority status behind claims for support of the debtor’s spouse, former spouse, or child, they formerly held first priority status. Therefore, the caselaw cited in this section describes administrative expenses as having first priority status.

Administrative expenses include most taxes that the bankruptcy estate incurs (with the exception of eighth priority tax expenses, discussed in §16.20 below), including income taxes that the estate incurs...