In Traditional Chapter 11 the company must pay quarterly fees to the U.S. Trustee’s office, based upon the amount of quarterly disbursements. If disbursements are less than $15,000 per quarter the fee is only $325; but as disbursements rise, the quarterly fee increases on a sliding scale. For example, if disbursements are at least $300,000 but less than $1 million, then the quarterly fees jump to $4,875. For the typical family owned business this is a steep price to pay, when added to attorneys and accounting fees, just to be under the chapter 11 umbrella.
In the new Small Business Bankruptcy Chapter 11 there are no U.S.Trustee Fees
Paul Hollender is Board-Certified in both Business and Consumer Bankruptcy, and has been helping business owners deal with financial difficulties for 43 years.
If you think this new law might help you, please call (718) 442-4424 to schedule an evaluation and strategy meeting.