If you or your business files a chapter 11 bankruptcy case, the chapter 11 debtor or "debtor-in-possession," which is usually a corporation or LLC, must pay a quarterly fee to the United States Trustee Program for each calendar quarter, or portion thereof, between the date of filing the petition and the date the court enters a final decree closing the case, dismissing the case, or converting the case to another chapter in bankruptcy.
The chapter 11 debtor must also file "Monthly Operating Reports" that summarize the financial operations of each month, on an accrual basis. If you don't have an accountant, you will need to hire one to help you prepare these chapter 11 monthly operating reports or MOR's.
The quarterly fee is calculated by totaling the debtor’s disbursements (payments to vendors and others) as reported on the Monthly Operating Reports for the three-month calendar quarter, or portion thereof. The quarterly fee amount will be estimated if disbursements for all of the months of a calendar quarter that the case is open have not been reported to the United States Trustee. A minimum fee of $325.00 is due even if there are no disbursements during a calendar quarter. There is no proration of the fee.
The fees are not too bad, but it is one more thing that must be taken care of by the chapter 11 debtor, or risk having the entire case dismissed or converted to chapter 7 (liquidation). I'll paste a chart showing the new fees effective January 1, 2018 below. The change from the old chart was only to debtors that pay more than $1,000,000 per quarter in disbursements. Instead of a lower amount, they will now pay a flat 1% of disbursements to the U.S. Trustee on a quarterly basis.
In accordance with the Bankruptcy Judgeship Act of 2017, Pub. L. No. 115-72, the following amended chapter 11 quarterly fee schedule will apply for the calendar quarters beginning January 1, 2018 through September 30, 2018.
|TOTAL QUARTERLY DISBURSEMENTS||QUARTERLY FEE|
|$0 to $14,999.99||$325.00|
|$15,000 to $74,999.99||$650.00|
|$75,000 to $149,999.99||$975.00|
|$150,000 to $224,999.99||$1,625.00|
|$225,000 to $299,999.99||$1,950.00|
|$300,000 to $999,999.99||$4,875.00|
|$1,000,000 or more||1% of quarterly disbursements or $250,000, whichever is less|
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