Source: https://www.abi.org/newsroom/press-releases/unreimbursed-medical-expenses-of-retirees-entitled-to-priority-status-in-0
Timestamp: 2020-02-19 19:43:17
Document Index: 201726545

Matched Legal Cases: ['§507', '§507', '§507', '§507', '§507', '§507', '§507']

Unreimbursed Medical Expenses of Retirees Entitled to Priority Status in Bankruptcy Proceeding According to Latest ABI Poll | ABI
Home Press Releases Unreimbursed Medical Expenses of Retirees Entitled to Priority Status in Bankruptcy Proceeding According to Latest ABI Poll Unreimbursed Medical Expenses of Retirees Entitled to Priority Status in Bankruptcy Proceeding According to Latest ABI Poll
Unreimbursed Medical Expenses of Retirees Entitled to Priority Status in Bankruptcy Proceeding According to Latest ABI Poll
UNREIMBURSED MEDICAL EXPENSES OF RETIREES ENTITLED TO PRIORITY STATUS IN BANKRUPTCY PROCEEDING, ACCORDING TO LATEST ABI POLL
August 21, 2007, Alexandria, Va. —A majority of respondents (52 percent) to ABI’s latest online poll agreed that unreimbursed medical expenses incurred by retirees of a bankrupt firm are entitled to priority status under the Bankruptcy Code. Forty-two percent of respondents “strongly agreed” and 10 percent “somewhat agreed” that unreimbursed medical expenses incurred by retirees are entitled to priority status in a bankrupt firm’s proceeding under §507(a)(5), subject to the temporal and dollar limitations set forth in the section.
Twenty-nine percent of respondents, however, did not agree that medical expenses of retirees should receive a priority status under §507(a)(5). Twenty percent “strongly disagreed” and 9 percent “somewhat disagreed” that unreimbursed medical expenses incurred by retirees of a bankrupt firm are entitled to a priority status under §507(a)(5), subject to the temporal and dollar limitations set forth in the section. Seventeen percent of the respondents did not know or had no opinion on the issue.
The U.S. Bankruptcy Court for the Southern District of California recently ruled in In re Consolidated Freightways Corp. of Delaware (Bankr. C.D. Cal. No RS02-24284 4/26/07) that retiree medical expenses are entitled to priority status under §507(a)(5), subject to the temporal and dollar limitations set forth in the section. The court noted that the legislative history and the public policy behind §507(a)(5) compelled it to include retired employees within the cap amount for a priority status claim.
ABI members and members of the public were welcome to submit their response to the statement: “Subject to the temporal and dollar limitations set forth in §507(a)(5), unreimbursed medical expenses incurred by retirees of a bankrupt firm are entitled to priority status under §507(a)(5). (In re Consolidated Freightways Corp. of Delaware, (Bankr. C.D. Cal. No. RS02-24284 MG 4/26/07). The latest ABI Quick Poll was open to the public for voting from August 3-16.