%Framework_CoreFunctionality_UIText_ProcessingReaderText%

Doctrine of Necessity (Financial Restructuring & Bankruptcy Glossary)
Summary
An analysis used in determining whether the payment of prepetition obligations in bankruptcy is permissible. Generally, the Doctrine of Necessity provides that a debtor may pay prepetition obligations if such payments are critical to the debtor’s reorganization. The circumstances of each case are unique, and the bankruptcy court will look at each situation and relationship with a creditor independently.