Bankruptcy court amendment protects against misuse of filing fee

January 4, 2018

The U.S. Bankruptcy Court for the Southern District of Indiana has amended language governing the payment of filing fees to the court, a change prompted by recent concerns about attorneys using clients’ filing fee payments for other purposes.

The court added the following language to its form order granting applications to allow fees to be paid in installments: “Regardless of the payment terms, counsel for debtor in receipt of good funds intended for the filing fee must remit those funds to the Court within 14 days of receipt.”

“This change is prompted by incidents where fees were paid to counsel before an installment was due, then used by counsel for purposes other than paying the filing fee,” the court wrote.

The official language change took effect on Dec. 28.


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