Issue link: https://mbozikis.ufcontent.com/i/1422521
194 with the estate's property. 28 U.S.C. § 959(a). The operation of the debtor's business can include the obtaining of credit under Section 364 of the Bankruptcy Code and the use, sale or lease of property under Section 363 of the Bankruptcy Code. The trustee is also permitted to assume or reject executory contracts and unexpired leases pursuant to Section 365 of the Bankruptcy Code. Finally, the trustee is authorized to prosecute avoidance actions in order to assist in the collection of the debtor's assets. Once the debtor's property has been collected and converted to cash, the trustee is obligated to distribute such cash to the debtor's creditors in accordance with the statutory priority scheme set forth in Section 726 of the Bankruptcy Code, as follows: (i) administrative expense claims and unsecured priority claims in the order set forth in Section 507 of the Bankruptcy Code (both timely filed claims and certain tardily filed claims), 111 (ii) general unsecured claims (both timely filed and certain tardily filed claims), (iii) the remaining tardily filed general unsecured claims, (iv) allowed secured and unsecured claims for fines, penalties and forfeitures and for punitive damages, arising before the earlier of the order for relief or the appointment of the trustee, in each case to the extent such amount is not compensation for actual pecuniary loss suffered by the creditor, (v) postpetition interest on the foregoing and (vi) the debtor. 11 U.S.C. § 726(a). Within each priority level, distributions are to be made pro rata. 11 U.S.C. § 726(b). One caveat to the foregoing hierarchy is that secured claims are paid out first from the underlying collateral to the extent they are not otherwise voidable. See United Sav. Ass'n. of Tex. v. Timbers of Inwood Forest Assocs., 484 U.S. 365, 370 (1988). Another caveat to the foregoing is that, where the Chapter 7 case resulted from the conversion of a case under another Chapter, the Chapter 7 administrative expenses have priority over the administrative expenses incurred in the prior case. 11 U.S.C. § 726(b). 111 See discussion of priority claims at Chapter V.D.2.c., above.