Supreme Court to Decide If Bankruptcy Fee Hike Constitutional

The U.S. Supreme Court will decide whether a temporary disparity in government fees charged to companies in Chapter 11 bankruptcy violates the Constitution.

Monday’s decision to hear the case will resolve a circuit split, which prompted both parties in the case to request the justices’ review.

The issue involves a temporary hike in the quarterly fees payable to the U.S. Trustee’s Office, the Justice Department’s bankruptcy watchdog. The fees were raised starting in 2018 from a maximum of $30,000 to a maximum of $250,000.

The increase didn’t apply in Alabama and North Carolina until later that year. The six districts ...