Section 16.18 Third Priority Involuntary Gap Creditors

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

2. (§16.18) Third Priority Involuntary Gap Creditors

The third category of priority claims under the Bankruptcy Code belongs to involuntary gap claimants. 11 U.S.C. § 507(a)(3). These claims arise when creditors force debtors into bankruptcy involuntarily. The period between the date that the involuntary bankruptcy petition is filed and the time that the bankruptcy court either appoints a trustee or grants the creditors’ order for relief is referred to as the involuntary gap period. 11 U.S.C. § 502(f). Any...