Comparison Between Canadian And American Post-Filing Obligations

The United States Bankruptcy Code takes a different approach in principle from the CCAA with respect to post-filing obligations. American legislators, however, have codified specific post-filing obligations towards employees and taxation authorities in greater detail than the CCAA.

Chapter 11 and administrative expense priority

Unlike the CCAA, the U.S. Bankruptcy Code expressly provides for priority for post-filing obligations. Section 503 of the Code provides for the payment of administrative expenses, which include "[t]he actual, necessary costs and expenses of preserving the estate including... wages, salaries, and commissions for services rendered after the commencement of the case."