Administrative Expense Claims

Administrative Expense Claims refer to requests for reimbursement or payment for necessary costs incurred in the operation of a business or organization. These expenses typically include salaries, utilities, office supplies, and other overhead costs that are essential for the day-to-day functioning of the entity. In the context of bankruptcy, these claims are given priority, meaning they must be paid first before other debts because they are crucial to maintaining operations during the legal proceedings. Understanding these claims is important for recognizing how businesses manage their finances, especially in challenging circumstances.