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ABI Journal

May 27, 2021

Circuits Are Now Split on the Constitutionality of the 2018 Increase in U.S. Trustee Fees

The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.

2nd Circuit

May 03, 2021

Another Circuit Upholds the 2018 Increase in U.S. Trustee Fees

Dissenters in the Fourth and Fifth Circuits evidently believe that the dual U.S. Trustee/Bankruptcy Administrator system is unconstitutional.

4th Circuit

April 19, 2021

A District Court Rules that the U.S. Trustee Fee Increase Isn’t Retroactive

California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.

9th Circuit, California, California Central District

March 18, 2021

Third Circuit Resurrects an ‘Admin’ Claim When the Stalking Horse Had No Breakup Fee

The Third Circuit found loopholes in the purchase agreement permitting the buyer to assert an administrative claim, even though the breakup fee was disallowed.

3rd Circuit

December 04, 2020

Court of Claims Upholds Fee Increase for U.S. Trustee System

The Fifth Circuit and now the Court of Claims found no constitutional flaw in the 2017 increase in fees paid by chapter 11 debtors to the U.S. Trustee system.

5th Circuit

November 06, 2020

Fifth Circuit Upholds Constitutionality of Increase in U.S. Trustee Fees

Dissenter in the Fifth Circuit believes that having both U.S. Trustees and bankruptcy administrators violates the Uniformity Clause.

5th Circuit

August 27, 2020

Fourth Circuit Stands Alone in Limiting Chapter 13 Plan Modifications

Eleventh Circuit joins the majority of circuits by holding that unforeseen, changed circumstances are not required to modify a chapter 13 plan.

11th Circuit

July 30, 2020

Federal Income Taxes for a ‘Straddle Year’ Are Administrative Priority Claims

On an issue with no appellate authority, a Delaware district judge rules that federal income taxes are administrative claims if filing occurs before the year’s end.

3rd Circuit, Delaware

May 21, 2020

Judge Shefferly Confines Viegelahn to Its Facts

If a chapter 13 plan isn’t confirmed, the debtor’s counsel is paid.

6th Circuit, Michigan, Michigan Eastern District

April 16, 2020

2% of Increased U.S. Trustee Fees Held Unconstitutional

Florida judge largely agrees with a Delaware judge by holding that the increase in fees for the U.S. Trustee program is neither impermissibly retroactive nor unconstitutional, mostly speaking.

11th Circuit, Florida, Florida Southern District