U.S. Supreme Court Seems Poised to Address Constitutionality of 2018 U.S. Trustee Fee Increase
Back in July, Craig Eller wrote in The Bankruptcy Protector about the continuing confusion amongst courts and litigants regarding the applicability of a 2018 increase in fees payable to the Office of the United States Trustee in chapter 11 cases. You can find that discussion here. At the time of that post, Craig speculated that the issue was likely going to have to be resolved by the U.S. Supreme Court at some point in the near future. Now, roughly three months later, that proposition seems even more likely in the wake of a decision from the Tenth Circuit issued this week (Oct. 5th).
With the Tenth Circuit’s recent decision, in which it joined the Second Circuit in finding violations of the Bankruptcy Clause because the increase did not apply immediately to chapter 11 debtors in two states with bankruptcy administrators rather than U.S. Trustees, there is now a 2/2 split among the circuits on this issue.
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Nelson Mullins Riley & Scarborough LLP by Shane G. Ramsey. Published October 11, 2021.