Bankruptcy fees may increase under new budget!

 

From http://www.al.com/news/index.ssf/2017/03/filing_for_bankruptcy_would_li.html

Filing for bankruptcy more expensive under Trump budget

Posted on March 17, 2017 at 10:03 AM

BY LEADA GORE lgore@al.com

Filing for bankruptcy would likely cost more under President Donald Trump’s budget proposal.

Trump’s “America First: A Budget Blueprint to Make America Great Again,” includes a provision that would raise an additional $150 million in 2017 through higher filing fees. Currently, the fees generate about $138 million; Trump’s budget aims to see that grow to $289 million by 2018.

The change, according to the outline would “ensure that those that use the bankruptcy court system pay for its oversight.”

The increased fees would go to the Department of Justice’s United States Trustee Program, which oversees the administration of bankruptcy filings.

The budget outline doesn’t specify which filing fees will increase.

Currently, the filing fee for Chapter 7 bankruptcy, the most common type of petition, is $335. Other filing fees range from $310 for Chapter 13 to $1,717 for Chapters 9, 11 and 15. Additional costs come from attorney’s fees and required financial counseling.

In 2016, there were more than 800,500 bankruptcy filings in the U.S., a decline of about 6 percent. Non-business consumer filings dropped by 6 percent and business petitions dropped by 2 percent, according to court statistics.

Chapter 11 filings, which generally covers business reorganizations, were up 6 percent.

The overall drop follows a 10 percent decline from the previous year.

***

If you go to the actual document, and search “bankruptcy”, you get this:

“Increases bankruptcy-filing fees to produce an additional $150 million over the 2017 annualized CR level to ensure that those that use the bankruptcy court system pay for its oversight. By increasing quarterly filing fees, the total estimated United States Trustee Program offsetting receipts would reach $289 million in 2018.” So, it looks like quarterly fees for Chapter 11s.

***

About the blogger:

Michael Curry of Curry Law Office in Mount Vernon, Illinois (http://michaelcurrylawoffice.com/) has helped thousands of individuals, family and small businesses in southern Illinois find protection under the Bankruptcy Code for almost twenty-five years. He is also available to help individuals and families with their estate planning (wills, power-of-attorney) and real estate and other sales transactions.

He is also the author of books on finance and bankruptcy available on Kindle through Amazon!

Whether you live in Mount Vernon, Salem, Waltonville, Woodlawn, Lawrenceville, Centralia, Louisville, Xenia, Grayville, Effingham, Dieterich, Vandalia, McLeansboro, Dahlgren, Albion, Flora, Clay City, Kinmundy, Chester, Sparta, Olney, Mount Carmel, Nashville, Fairfield, Cisne, Wayne City, Carmi, Grayville, or anywhere in Southern Illinois call Curry Law Office today at (618) 246-0993 and Finally Be Financially Free!

You can also access my website at http://www.mtvernonbankruptcylawyer.com

 

 

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