You are here

In re John E. Uecker and Erdene M. Uecker

Bankr. No.: 
02-41062
Chapter: 
12
Date of Decision: 
December 17, 2004
Issue: 
Whether a creditor may recover as an administrative expense under 11 U.S.C. § 503(b) the cost of an appraisal prepared in support of the creditor’s objection to a debtor’s chapter 12 plan?
Ruling: 
None of the provisions of 11 U.S.C. § 503(b) authorizes a creditor’s recovery of the cost of an appraisal prepared in support of the creditor’s objection to a debtor’s chapter 12 plan. To recover under § 503(b)(1)(A), the creditor must show the expense arose from a transaction with the debtor or the debtor’s estate. To recover under § 503(b)(3)(D), the creditor must incur the expense in making a substantial contribution in a chapter 9 or chapter 11 case. Therefore, a creditor may not recover as an administrative expense under 11 U.S.C. § 503(b) the cost of an appraisal prepared in support of the creditor’s objection to a debtor’s chapter 12 plan, even if the appraisal led the debtor to increase the debtor’s proposed payments to certain creditors.
Full Bankruptcy Court Decision: