Nashville Bankruptcy Attorneys Clark & Washington Discuss the 503(b)(9) 20-Days Claim

    NASHVILLE, TN, May 21, 2014 /24-7PressRelease/ -- There is quite a bit of confusion and resulting litigation surrounding the 20-day claim covered by Section 503(b)(9) of the US Bankruptcy Code. Clark & Washington, bankruptcy attorneys in Nashville, wish to explore this section of the code and what it means for creditors.

Under most state laws, a seller has the right to reclaim their goods from a defaulting buyer. Typically, a reclamation notice must be given within 20 days of delivery, but some states require as few as 10 days. These short time frames inspired changes in the Bankruptcy Code to allow creditors to give notice within 20 days after the debtor filed for bankruptcy.

The 2005 expansion of the Bankruptcy Code allows for goods that are sold to a debtor within 45 days of bankruptcy filing to be reclaimed as long as the seller gives notice within the first 20 days after the debtor files for bankruptcy. Clark & Washington warn that if the seller does not provide appropriate notice, they will waive their right to reclaim their goods.

If your right to reclamation is rendered meaningless, either through your failure to provide appropriate notice or through some other means, you can fall back on Section 503(b)(9) to receive some relief for your lost goods. You can file for an administrative expense claim for goods sold in the 20 days prior to the debtor's filing for bankruptcy, and you will receive a higher priority for your claim than unsecured lenders.

Debtors will typically challenge your 503(b)(9) claim, so be prepared for a legal battle. Have supporting documentation before you file your claim, and discuss the possibility of negotiating with your attorney.

Learn more at http://www.bankruptcyattorneyNashville.com.

About Clark & Washington:

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.bankruptcyattorneyNashville.com.

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