Chapter 11 Quarterly Fees

Chapter 11 Quarterly Fees

IMPORTANT NOTICE

COVID-19 Pandemic Update for Fee Payment Processing

Monday, May 4, 2020

Due to the COVID-19 pandemic, mail sent to a U.S. Trustee office will be held until the office is safely able to resume in-person operations. For the most expeditious payment processing, please pay all U.S. Trustee fees online through pay.gov at: https://www.pay.gov/public/form/start/672415208.

If paying U.S. Trustee fees by mail, please send the payment to the U.S. Bank lockbox (which upon receipt may take up to 120 hours to process) at:

United States Trustee Payment Center
P.O. Box 6200-19
Portland, OR 97228-6200

Any payments mailed to a U.S. Trustee office, will be processed when employees return to the office.

The Centers for Disease Control and Prevention (CDC) have established a site with the latest information from the CDC and overarching medical community on COVID-19: https://www.coronavirus.gov

Under 28 U.S.C. § 1930(a)(6), a quarterly fee shall be paid to the United States Trustee System Fund at Treasury in each case under chapter 11 (except small business cases under Subchapter V of chapter 11) 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. 

Quarterly Fee Calculation

The quarterly fee is calculated by totaling the reported disbursements for the three-month calendar quarter, or portion thereof, according to the fee schedules shown 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) the reported disbursement history, b) the debtor’s initial financial data submitted when the case was filed, or c) the United States Trustee’s estimate.  If there is a disagreement with the estimated quarterly fee noted on the billing statement, then Monthly Operating Reports or actual disbursement reports supporting a different calculation must be filed with the bankruptcy court and served on the United States Trustee office.  A minimum fee of $325.00 is due even if there were no disbursements during a calendar quarter.  The fee is not prorated.

The Bankruptcy Judgeship Act of 2017, Pub. L. No. 115-72, temporarily 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 Consolidated Appropriations Act, 2020, enacted on December 20, 2019, provides that 28 U.S.C. § 1930(a)(6)(B) “shall be applied for this fiscal year and next fiscal year by substituting ‘$300,000,000’ for ‘$200,000,000.’”  Pub. L. No. 116-93, § 219, 133 Stat. 2317, 2415 (2019).  As a result, the Fund balance precondition for application of the amended fee schedule is $300,000,000 for fiscal years 2020 and 2021.

Fee Schedule for Calendar Quarters Beginning
January 1, 2018 through September 30, 2020

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.

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

The balance in the Fund as of September 30, 2019, was less than $135 million. Accordingly, the amended chapter 11 quarterly fee schedule below applies for the calendar quarters beginning October 1, 2019 through September 30, 2020.

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

Fee Schedule for 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

Fee Due Date

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 dismiss or convert the case to a chapter 7 case.

Payment Options

A billing statement from the United States Trustee Program is mailed to the debtor or other designated party for each calendar quarter before the payment due date. Chapter 11 quarterly fees may be paid online at https://www.pay.gov/public/form/start/672415208 or by mailing the tear off portion of the statement and a check, made payable to “United States Trustee”. 

The address to use to mail quarterly fee payments is:

United States Trustee Payment Center
P.O. Box 6200-19
Portland, OR 97228-6200

The address to use for overnight delivery is:

U.S. Bank
Attn Government Lockbox – U.S. Trustee Payment Center 6200-19
17650 N.E. Sandy Blvd
Portland, OR 97230-5000

The addresses shown above are a lockbox at a bank. Do not use these addresses for service of process, correspondence, or any purpose other than paying quarterly fees. Any other correspondence or documents sent to the lockbox other than the payment form will be destroyed.

Each quarterly fee must be timely paid. Failure to receive a bill from the Executive Office for United States Trustees does not excuse 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).

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