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ABI Journal

January 29, 2024

Courts May Create Trust Accounts to Pay Sub V Trustees and Other Admin Expenses

The court can’t require a debtor to give a ‘retainer’ to a Subchapter V trustee, Judge Pearson says.

9th Circuit, Oregon

January 16, 2024

Supreme Court Seems Disinclined to Pay Refunds for Overpayment of U.S. Trustee Fees

Several justices seemed to believe that ‘prospective relief’ is sufficient to remedy the due process violation because the alternatives are ineffective.

Supreme Court

November 03, 2023

Judge Explains Why Tax Liens Are Subordinated to Domestic Support Obligations

Congress decided to deviate from standard priorities by providing in Section 724 that unsecured domestic support obligations come ahead of tax liens.

2nd Circuit, New York, New York Eastern District

September 21, 2023

Supreme Court Will Soon Grant or Deny ‘Cert’ to Rule on Refunds for UST Overpayments

The bankruptcy court in Delaware sided with four circuits by directing the U.S. Trustee to give refunds for overpayment of fees that were not uniform throughout the country.

3rd Circuit, Delaware

August 28, 2023

Four Circuits Agree: Debtors Get Refunds for Overpayment of U.S. Trustee Fees

With four circuits in agreement, the Supreme Court isn’t likely to grant cert to rule on whether chapter 11 debtors are entitled to refunds for overpayment of U.S. Trustees fees that were held unconstitutional in Siegel.

9th Circuit

August 04, 2023

Fifth Circuit Approves Breakup Fees as ‘Admin’ Expenses or Costs of Sale

The Fifth Circuit avoided deciding whether approval of breakup fees is judged by the more lenient Section 363(b) or the more exacting standard for administrative expenses under Section 503(b).

5th Circuit

June 28, 2023

Three Circuits Now Require Refunds for Overpayment of U.S. Trustee Fees

The government has filed a petition for certiorari raising the question of whether refunds are the proper remedy following the Supreme Court’s Siegel decision finding that the 2018 increase in U.S. Trustee fees was unconstitutional.

11th Circuit

January 09, 2023

The Best Opinion Yet Ordering Refunds for Overpayment of U.S. Trustee Fees

All three courts to confront the question have now ordered the government to refund overpayments of U.S. Trustee fees.

4th Circuit, Virginia, Virginia Eastern District

December 05, 2022

DIP Counsel’s Right to Compensation Ends Immediately on a Trustee’s Appointment

Appealing an order appointing a chapter 11 trustee does not entitle the DIP’s counsel to compensation pending appeal, Judge Klein says.

9th Circuit, California, California Eastern District

November 14, 2022

Two Circuits Now Require Refunds for Overpayment of U.S. Trustee Fees

The Second Circuit essentially reissued its original decision from last year by again requiring the U.S. Trustee to refund the overpayment of unconstitutional fees.

2nd Circuit