How can vendors get paid in a bankruptcy case? First determine if any of the amounts owed comply with Section 503(b)(9) of the bankruptcy code which allows a creditor to obtain an “administrative” claim in the bankruptcy case.

Priorities are important in bankruptcies. Generally, highest priority creditors get paid first, then moving down to the lowest priority creditors – general unsecured creditors.

Banks, professionals providing work for the Debtor, have high priority claims and professionals including the committees appointed to represent creditors have administrative claims in order that the bankruptcy case can proceed.

Vendors who shipped goods within twenty days of the bankruptcy case directly to the bankruptcy company, not dropped shipped, may be able to assert an administrative claim.

What are your options? File a proof of claim and explore options which include selling your administrative claim.