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Justices Vacate Another Ruling on Government Bankruptcy Fees

June 27, 2022, 2:07 PM

The US Supreme Court vacated a ruling that deemed the US Trustee’s temporarily hiked debtor fees to be constitutional, remanding the case for further proceedings.

Monday’s decision by the high court in Bast Amron v. US Trustee to summarily overturn the US Court of Appeals for the Eleventh Circuit represents the third time in recent weeks the justices determined that the US Trustee’s 2018 fee hike, charged to Chapter 11 debtors, is unconstitutional.

The US Trustee, the Justice Department’s bankruptcy watchdog, was empowered by a 2017 law to raise its quarterly fees from a maximum of $30,000 to $250,000. The ...