Memorandum United States Bankruptcy Courts

Clarification of Effective Date of Statutory Fee Increases and Reallocation of Fees for Bankruptcy Cases to October 17, 2005 During the past two weeks, the Bankruptcy Court Administration Division has held conference calls with the bankruptcy clerks. One of the areas discussed on these calls is the increase in statutory filing fees for bankruptcy cases, and the distribution of those fees. I am writing to let you know that the changes to the fee amounts and the method for their
apportionment will be effective October 17, 2005.

As you are aware, under the Section 325 of the Bankruptcy Abuse Prevention and
Consumer Protection Act of 2005 (Pub L. 109-8, 2005) the filing fee amounts required by 28
U.S.C. § 1930 would change as follows, effective October 17, 2005:
Chapter 7 - increase from $155 to $2001
Chapter 13 - decrease from $155 to $150, and
Chapter 11 - increase from $800 to $1,000.

This section also changed how the fees are apportioned between the General Fund of the
Treasury, the U.S. Trustee program and the judiciary and would restrict the use of a portion of
the funds distributed to the judiciary. Those changes in how fees were to be apportioned were
effective immediately. On April 18, 2005, George Schafer sent a memorandum to all bankruptcy
clerks indicating that there were drafting errors in this section and, therefore, recommending that
courts defer implementation of these fee provisions until these issues are resolved.
Because of the drafting error in the allocation of filing fees, as well as other issues, the
judiciary, working with the Department of Justice, sought legislative action to amend this section
of the Act. This amendment also includes an additional increase in the filing fee for Chapter 7 to
2 Increasing the $200 figure that was included in the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2005 (Pub L. 109-8, 2005).

Clarification of Effective Date of Statutory Fee Increases and Reallocation of Fees for
Bankruptcy Cases to October 17, 2005 2

$2202 that proposed by the U.S. Trustees. This correction has been included in H.R. 1268,
the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and
Tsunami Relief, 2005, which was signed into law by the President on May 11, 2005 (Pub. L.
109-13, 2005).

In reviewing the language authored by the House Judiciary Committee that was included
in the Supplemental Appropriation Act, there was some uncertainty about its effective date.
Subsection (b) of the amendment, states that the provision “shall take effect immediately after
the enactment of the Bankruptcy Abuse and Consumer Protection Act of 2005.” A literal
reading of this language could be that the fee provisions are intended to be effective on the date
of enactment of the Bankruptcy Abuse and Consumer Protection Act of 2005 (April 20, 2005),
which would mean that the fee increases would be retroactive back to that date and that, for
cases filed between April 20 and the date that the President signs the supplemental bill,
additional fees would be owed in cases filed under Chapter 7 and 11, and credits would be due in
Chapter 13 cases. It is this interpretation which we have been discussing on our circuit
conference calls over the past two weeks.

We have just learned, however, that the fee increases included in the Supplemental
Appropriations Act will not be retroactive. We have been informed by staff of the House
Judiciary Committee, working with the House Legislative Counsel, that the amendment to
section 325 will replace the original section 325 in the Bankruptcy Reform Act, and, as
amended, section 325 would be subject to the Act’s overall effective date of October 17, 2005.
Our General Counsel concurs with this opinion. Thus, effective October 17, 2005, the filing fee
amounts required by 28 U.S.C. § 1930 will change as follows:

Chapter 7 - increase from $155 to $200 (Bankruptcy Reform) to $220 (Supplemental)
Chapter 13 - decrease from $155 to $150 (Bankruptcy Reform & Supplemental), and
Chapter 11 - increase from $800 to $1,000 (Bankruptcy Reform & Supplemental).

In addition, the supplemental provision will amend the allocation of fees that was
contained in the enacted Bankruptcy Reform Bill. Further information on these new allocations,
which will also be effective on October 17, 2005, will be forthcoming.

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