4 Collier on Bankruptcy P 503.06
Summary
- [1] “Actual” and “Necessary” Preservation Costs
The modifiers “actual” and “necessary” must be observed with scrupulous care. Before incurring expenses, the trustee should conclude that they are indeed necessary to preserve the estate. “Preserving the estate,” ...
The first of the specified types of claims allowable as administrative expenses are those described by section 503(b)(1)(A) as “the actual, necessary costs and expenses of preserving the estate.” Section 503(b)(1)(A) makes no attempt to enumerate potential items of expense that fit within the phrase other than to state that it does include “wages, salaries, or commissions for services rendered after the commencement of the case” and certain back pay awards pursuant to a judicial or NLRB proceeding.1