Sanchez V. Northwest — A Dangerous Exception

Law360, New York (January 10, 2012, 5:35 PM EST) -- The typical debtor in a Chapter 11 case relies on the fact that once they have emerged from their bankruptcy proceeding they will receive a discharge of not only their prepetition debts, but also postpetition debts that were incurred before the confirmation of their plan.

Debtors and practitioners frequently assume that between paying administrative debts in the “ordinary course” and establishing an administrative bar date they have effectively put in place procedures that will remove the threat of an unexpected administrative claim arising post confirmation....
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