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A Chapter 11 Bankruptcy filing paper is pictured with a ballpoint pen.

Sept. 22, 2023

Circuit Rulings Confirm Chapter 11 Trustee Fee Refund Trend

By Adam Herring


In an article published by on Sept. 19, Nelson Mullins of counsel attorney Adam Herring shared his analysis of recent circuit decisions regarding remedies for Chapter 11 debtors that overpaid quarterly U.S. Trustee fees held to be unconstitutional by the U.S. Supreme Court decision in Siegel v. Fitzgerald. While Siegel "resolved a significant controversy in bankruptcy practice, it left open the question of the appropriate remedy for debtors who paid the unconstitutional fees," Herring wrote.

"In a pair of recent decisions in August and June, respectively, the U.S. Courts of Appeals for the Ninth and Eleventh Circuits have joined other courts in determining that the government must refund fee overpayments by Chapter 11 debtors," Herring wrote in his analysis.

Herring, recognized by the American Bankruptcy Institute as a “40 Under 40” insolvency practitioner, advises businesses in complex restructuring and bankruptcy matters and guides clients through difficult issues arising from distressed debts. In addition to extensive experience representing parties in bankruptcy cases, he is a skilled bankruptcy litigator, with lead trial counsel experience in contested matters including fraudulent and preferential transfer avoidance actions and cases involving dischargeability of debt.

Subscribers to Law360 can read the full article, here.