Justices Vacate, Remand Ruling on Government Bankruptcy Fees

The US Supreme Court summarily vacated an appeals court decision and remanded the case to consider what refund the US Trustee should pay for unconstitutionally hiked bankruptcy administration fees charged to Chapter 11 debtors in 2018.

The current appeal arose from the US Court of Appeals for the Tenth Circuit’s October 2021 opinion in In re John Q. Hammons Fall 2006 LLC that found certain US Trustee quarterly fees paid by large Chapter 11 debtors for nine months in 2018 are unconstitutional. The Tenth Circuit remanded the case to the lower courts to determine the amount to be refunded.

The ...