December 14, 2020

House Passes Bill Mandating Bankruptcy Fee Increase

Last week, the House of Representatives passed legislation to make access to federal court records free. The bill also contains a provision that directs federal courts to increase fees to offset the loss of revenue associated with free access, including bankruptcy fees.

The bill had originally called for fees of proofs of claims, but that specific provision was removed at the last minute. However, the bill now mandates bankruptcy fee increases.

There is concern among lenders that this general requirement will be used, without Congressional authority, to impose a POC fee.

The American Bankers Association has written to Congress asking that bankruptcy fee increases be removed from the legislation.

The outlook is unclear for this year, although the legislation may be included in a year-end spending bill as a so-called "rider."  Read the ABA's Opposition to H.R. 8235

AIS will continue to monitor this bill and provide updates of its progress.

 



 

 

 

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