In re Smith & Son Septic & Sanitation Serv., 88 B.R. 375 (Bankr.D.Utah)
PUBLISHED
Debtor partnership moved to dismiss its chapter 11 case due to changes in financial circumstances that made confirmation of a plan impossible. The US Trustee objected to dismissal on the ground that debtor had failed to pay quarterly fees imposed by 28 U.S.C. § 1930(a)(6). Both parties agreed that conversion of the case to chapter 7 would serve no purpose. No other party objected to dismissal. Noting that Congress had failed to provide a means of enforcing payment of the § 1930(a)(6) fees, the court considered and rejected trustee's suggested alternatives to dismissal, including imposition of a contempt order against debtor, or awarding trustee a money judgment for the fees. The court concluded that trustee's interpretation of the fees statute, to the effect that debtors must pay the minimum fee for each quarter even if no disbursements were made, was not supported by the statute's legislative history. The court dismissed debtor's case, but allowed time for the trustee to determine whether it wanted to file an adversary proceeding to recover unpaid fees in accordance with the court's interpretation of § 1930(a)(6).