- Ag Docket
Before filing Chapter 12, the debtor allowed the insurance on his combine and header to lapse. After filing bankruptcy the combine remained uninsured, with a creditor later obtaining forced-place insurance on the combine and header. Inadvertently, the creditor allowed its lien on all of its collateral to be released without being reimbursed for insurance expenses. The creditor sought reimbursement of administrative expenses and the court allowed it, with modification, because the cost of insuring the equipment postpetition is among "the actual, necessary costs and expenses of preserving the estate" within the meaning of 11 U.S.C. Sec. 503(b)(1)(A). In re Jarriel, No. 13-60070-EJC, 2014 Bankr. LEXIS 3938 (S.D. Ga. Sept. 11, 2014).
CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.