Mandatory Reorganization Fee: Schedule, Due Dates, and Penalties

In a Chapter 11 bankruptcy, the debtor owes a quarterly fee to the U.S. Trustee Program for every quarter the case remains open. Under the schedule that took effect in 2026, the Chapter 11 quarterly fee runs from $325 to $30,000 per quarter, set by how much money the estate disbursed during the previous calendar quarter. It is separate from the filing fee paid at the start of the case, and confirming a reorganization plan does not end it.1United States Department of Justice. Chapter 11 Quarterly Fees

The 2026 Fee Schedule

The statute at 28 U.S.C. § 1930(a)(6) sets a 12-tier flat-fee schedule. You find the tier that matches your total disbursements for the quarter and pay the flat amount for that tier. There is no percentage calculation.2Office of the Law Revision Counsel. 28 USC 1930 – Bankruptcy Fees

  • Less than $15,000: $325
  • $15,000 to $74,999: $650
  • $75,000 to $149,999: $975
  • $150,000 to $224,999: $1,625
  • $225,000 to $299,999: $1,950
  • $300,000 to $999,999: $4,875
  • $1,000,000 to $1,999,999: $6,500
  • $2,000,000 to $2,999,999: $9,750
  • $3,000,000 to $4,999,999: $10,400
  • $5,000,000 to $14,999,999: $13,000
  • $15,000,000 to $29,999,999: $20,000
  • $30,000,000 or more: $30,000

If you paid substantially higher percentage-based fees on a Chapter 11 case in recent years, that was the temporary schedule under 28 U.S.C. § 1930(a)(6)(B), which applied from 2021 through the end of 2025 and capped at $250,000 per quarter. It expired, and all cases are back on the permanent tier table above.2Office of the Law Revision Counsel. 28 USC 1930 – Bankruptcy Fees

What Counts as a Disbursement

The statute doesn’t define the term, and courts read it broadly. Most treat disbursements as every payment flowing out of the estate: ordinary operating expenses, payments to secured creditors, professional fees, and distributions under a confirmed plan. Payments made by a third party on the debtor’s behalf have also been counted toward the total.2Office of the Law Revision Counsel. 28 USC 1930 – Bankruptcy Fees

Internal movements of the debtor’s own money generally do not count. Transferring funds between the debtor’s bank accounts, buying a certificate of deposit, or funding an escrow for post-confirmation obligations is not a disbursement because the estate hasn’t actually parted with the money. The question is whether the transaction reduced what the estate has.

Getting this wrong cuts both ways. Underreport and you underpay, which invites penalties. Overreport and you drain cash the reorganization needs.

When the Fee Is Due

Each quarter’s fee is due on the last day of the month after the quarter closes.2Office of the Law Revision Counsel. 28 USC 1930 – Bankruptcy Fees

  • Q1 (January–March): due April 30
  • Q2 (April–June): due July 31
  • Q3 (July–September): due October 31
  • Q4 (October–December): due January 31

Payment goes to the regional U.S. Trustee office overseeing the case, not to the bankruptcy court clerk. Many regions accept electronic payment through an online portal. Any past-due fees, with applicable interest, must be paid before the effective date of a confirmed plan, and again before the court will enter a final decree closing the case.1United States Department of Justice. Chapter 11 Quarterly Fees

Who Owes the Fee

The obligation attaches the moment a Chapter 11 petition is filed, voluntary or involuntary. It runs every quarter until the court enters a final decree, dismisses the case, or converts it to another chapter.1United States Department of Justice. Chapter 11 Quarterly Fees Plan confirmation alone does not stop the meter. The stretch between confirmation and final decree is easy to underestimate, and quarterly fees keep accruing for every quarter of it.

Several situations sit outside the fee:

  • Subchapter V small business cases. The statute carves these out; Subchapter V debtors do not pay quarterly fees to the U.S. Trustee.2Office of the Law Revision Counsel. 28 USC 1930 – Bankruptcy Fees
  • Cases under Chapters 7, 12, and 13. The quarterly fee applies only to Chapter 11.
  • Cases in Alabama and North Carolina. Those districts operate under the Bankruptcy Administrator program; debtors there pay comparable fees to their Bankruptcy Administrator instead of the U.S. Trustee.3United States Department of Justice. Administrative Expenses Multiplier

Conversions change the picture immediately. A Chapter 12 or 13 case converted to Chapter 11 becomes subject to the quarterly fee right away. A Chapter 11 case converted to Chapter 7 stops accruing it.2Office of the Law Revision Counsel. 28 USC 1930 – Bankruptcy Fees

What Happens If You Don’t Pay

Falling behind on quarterly fees gives the U.S. Trustee grounds to move for dismissal of the Chapter 11 case or conversion to Chapter 7 liquidation.1United States Department of Justice. Chapter 11 Quarterly Fees Either outcome ends the debtor’s ability to reorganize on its own terms.

Even without a dismissal motion, unpaid fees block the final decree. The court will not close the case until the U.S. Trustee confirms that every accrued quarterly fee is paid in full. A debtor that confirmed a plan, made its distributions, and satisfied every plan obligation can still find the case stuck open over an outstanding fee balance, with the reporting duties and oversight that come with an open case still in place.