Increased Bankruptcy Fees Affecting Companies

Some companies operating under Chapter 11 protection are struggling to deal with the quarterly trustee fee increases that came into effect at the start of the year, The Wall Street Journal reports. Previously capped at $30,000, the rule change now caps the fees at $250,000. Last October, Congress passed these increases as part of a disaster-relief spending bill. The change only applies to companies with quarterly operating costs over $1 million. Grocery stores, car and boat dealerships, agricultural businesses and any company that has high costs and modest profits are particularly affected. This new fee system is set to end in 2022, but will be reviewed annually.

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