DOJ Bankruptcy Unit Probed on Fee Practicality at Supreme Court

US Supreme Court justices questioned lawyers about the practical implications of a bankruptcy fee dispute and the intent of Congress during arguments about uneven fee payments made to the Department of Justice.

The high court is being asked to determine whether the Justice Department’s bankruptcy watchdog, the US Trustee, should refund about $326 million in quarterly fees paid by Chapter 11 debtors or if it should collect additional payments from two states that were left out of a 2018 fee hike. The issue arose after Congress inadvertently created a discrepancy by increasing the maximum fees the US Trustee could collect ...