Alabama and North Carolina threw a political hissy fit, three or four decades ago. They wanted their own bankruptcy administrator system, not the U.S. trustee system established everywhere else. And they were rewarded. Now, Chapter 11 debtors in two states pay lower quarterly fees than Chapter 11 debtors in the other 48 states.

So, what's the big deal? Don Swanson provided Expert Analysis for Law360's Bankruptcy publication identifying some of the harms and costs of the lower fees - i.e., unconstitutionality, wasted judicial and legislative resources and a high cost remedy - and suggests remedies that provide accountability for the two states that caused the problem. The full article is linked below or can be viewed here with a subscription. 

To read more of Don's analysis on bankruptcy law, follow his blog at mediatbankry.com.

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