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The Sixth Circuit reverses the bankruptcy court and district court, holding that a creditor making a substantial contribution in a Chapter 7 case may be awarded an administrative expense claim. Section 503(b) expressly provides that creditors making substantial contributions in Chapter 9 cases and Chapter 11 cases may be awarded an administrative expense claim
The Sixth Circuit reverses the bankruptcy court and district
court, holding that a creditor making a substantial contribution in
a Chapter 7 case may be awarded an administrative expense claim.
Section 503(b) expressly provides that creditors making substantial
contributions in Chapter 9 cases and Chapter 11 cases may be
awarded an administrative expense claim. The lower courts held that
this necessarily excludes such claims in Chapter 7 cases. The Sixth
Circuit holds that because 503(b)'s list is not exclusive (the
list is preceded by the word "including"), a creditor in
a Chapter 7 case case may be awarded an administrative expense
claim for making a substantial contribution. Opinion below.
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