Trustee Update

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Beginning January 1, 2018, a new law increased maximum US Trustee quarterly fees for Chapter 11 cases from $30,000 to $250,000. Because there was less need to keep the case open beyond first quarter 2019, as Trustee I filed a joint application in January, 2019 with the Creditors’ Trust Trustee to close the Life Partners bankruptcy case, which would terminate any additional quarterly UST fees at the higher amount. The application was set to be heard on February 28, 2019. On February 8, 2019, an opinion from a Western District of Texas bankruptcy court held that imposing the new fee structure in cases with plans of reorganization confirmed before January 1, 2018 was unconstitutional. Accordingly, as Trustee I have withdrawn my application to close the case and instead have filed a motion asking the bankruptcy court in Fort Worth to find the maximum quarterly UST fees for the Trust to be $30,000 and to refund the overpayment of $244,000 in fees which were already paid in 2018. If I am successful with the motion it will save approximately $1 million for the Trust estate. A hearing will most likely occur in May 2019. The motion is available here.