DOJ Bankruptcy Fee Overhaul Would Hike Chapter 11 Costs

The federal government is seeking an overhaul of corporate bankruptcy fees to help the court system pay for its oversight.

The U.S. Trustee Program that oversees bankruptcy administration is proposing adjustments to quarterly fees for the largest Chapter 11 debtors, a Department of Justice spokesman confirmed in an email. The new structure would switch most payments to percentage of disbursements instead of the current flat rate scheme and would significantly increase costs on the biggest-ticket cases.