Chapter 11 Quarterly Fees

Debtors in chapter 11 cases must pay a quarterly fee under 28 U.S.C. § 1930(a)(6) to the United States Trustee Program for each calendar quarter, or portion thereof, between the date a bankruptcy petition is filed and the date the court enters a final decree closing the case, dismisses the case or converts the case to another chapter in bankruptcy.  The quarterly fee is calculated by totaling the debtor’s disbursements as reported on the Monthly Operating Reports for the three-month calendar quarter, or portion thereof, according to the chart below.  The quarterly fee amount will be estimated if disbursements for all of the months of a calendar quarter that the case is open have not been reported to the United States Trustee.  The estimated fee is based on: a) reported disbursement history, b) initial financial data submitted when the case was filed, or c) an estimation done by the United States Trustee office.  If the debtor calculates the fee to be less than the estimated quarterly fee on the statement, the debtor must submit actual disbursement reports supporting the calculation to the bankruptcy court and the United States Trustee office.  A minimum fee of $325.00 is due even if the debtor has no disbursements during a calendar quarter.  The fee is not prorated.

The fee schedule below applies for the calendar quarters beginning January 1, 2008 through December 31, 2017.

TOTAL QUARTERLY DISBURSEMENTS QUARTERLY FEE
$0 to $14,999.99 $325.00
$15,000 to $74,999.99 $650.00
$75,000 to $149,999.99 $975.00
$150,000 to $224,999.99 $1,625.00
$225,000 to $299,999.99 $1,950.00
$300,000 to $999,999.99 $4,875.00
$1,000,000 to $1,999,999.99 $6,500.00
$2,000,000 to $2,999,999.99 $9,750.00
$3,000,000 to $4,999,999.99 $10,400.00
$5,000,000 to $14,999,999.99 $13,000.00
$15,000,000 to $29,999,999.99 $20,000.00
$30,000,000 or more $30,000.00

The Bankruptcy Judgeship Act of 2017, Pub. L. No. 115-72, amended the calculation of chapter 11 quarterly fees effective January 1, 2018.  Under this amendment, during each of fiscal years 2018 through 2022, if the balance in the United States Trustee System Fund (Fund) as of September 30 of the most recent full fiscal year is less than $200 million, the quarterly fee payable for a calendar quarter in which disbursements equal or exceed $1 million shall be the lesser of 1 percent of such disbursements or $250,000.

The balance in the Fund as of September 30, 2017, was less than $15 million.  Accordingly, the amended chapter 11 quarterly fee schedule below applies for calendar quarters beginning January 1, 2018 through September 30, 2018.

In addition, the balance in the Fund as of September 30, 2018, was less than $45 million.  Accordingly, the amended chapter 11 quarterly fee schedule below will continue to apply for calendar quarters beginning October 1, 2018 through September 30, 2019.

TOTAL QUARTERLY DISBURSEMENTS QUARTERLY FEE
$0 to $14,999.99 $325.00
$15,000 to $74,999.99 $650.00
$75,000 to $149,999.99 $975.00
$150,000 to $224,999.99 $1,625.00
$225,000 to $299,999.99 $1,950.00
$300,000 to $999,999.99 $4,875.00
$1,000,000 or more 1% of quarterly disbursements or $250,000, whichever is less

Quarterly fees are due no later than one month following the end of each calendar quarter.  Failure to pay quarterly fees may result in the conversion or dismissal of the case.  Payment of that quarter’s fees and any past due fees and interest, if applicable, must be made before the effective date of a confirmed plan of reorganization and quarterly fees will continue to accrue until entry of the final decree, or until the case is converted or dismissed.  Failure to pay these fees may result in a motion by the United States Trustee to convert the case to a chapter 7 case.

A billing statement from the United States Trustee Program is mailed to the debtor for each calendar quarter before the payment due date.  The debtor should send the tear-off portion of the statement and a check for the quarterly fee, made payable to “United States Trustee,” to: United States Trustee Payment Center, P.O. Box 530202 Atlanta, GA 30353-0202.

The address shown above is a lockbox at a bank. It may NOT be used for service of process, correspondence or any purpose other than payment of quarterly fees. Any other correspondence or documents sent to the lockbox other than the payment form will be destroyed.

The debtor is responsible for timely payment of the quarterly fee.  Failure to receive a bill from the Executive Office for United States Trustees does not excuse the debtor from timely payment.  Failure to pay the quarterly fee is cause for conversion or dismissal of the chapter 11 case pursuant to 11 U.S.C. § 1112(b)(4)(K) (for cases filed on or after October 17, 2005) or 11 U.S.C. § 1112(b)(10) (for cases filed before October 17, 2005).

Updated November 9, 2018

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