What does Preamble of Bankruptcy Administration Improvement Act of 2025 do?

This bill is formally titled the Bankruptcy Administration Improvement Act of 2025. The Act amends titles 11 and 28 of the United States Code. It modifies compensation for trustees in Chapter 7 bankruptcy cases. The Act extends the terms of temporary bankruptcy judge offices. The Act includes provisions for 'other purposes'.

What does > SHORT TITLE. of Bankruptcy Administration Improvement Act of 2025 do?

This bill is formally titled the Bankruptcy Administration Improvement Act of 2025.

What does FINDINGS. of Bankruptcy Administration Improvement Act of 2025 do?

This section outlines findings related to the bankruptcy system and the compensation of chapter 7 bankruptcy trustees. Congress has historically amended bankruptcy fees to maintain a self-supporting system and fairly allocate costs. Chapter 7 bankruptcy trustees are considered vital to the system, administering cases and returning assets to creditors. The compensation for chapter 7 trustees has remained at $60 per case since 1994, despite increases in other bankruptcy-related costs. This Act aims to increase chapter 7 trustee compensation to $120 per case, reflecting the intended level from 1994 and accounting for inflation. The Act also seeks to ensure adequate funding for the United States trustee system and preserve existing bankruptcy judgeships. The Act clarifies that filing fees will not be altered and the authority of district and bankruptcy courts to waive fees for indigent individuals will remain unchanged.

What does TRUSTEE COMPENSATION. of Bankruptcy Administration Improvement Act of 2025 do?

This section amends Section 330 of Title 11, United States Code, increasing the compensation limit for officers from $45 to $105. Subsection (e) of Section 330 of Title 11, United States Code, is removed. Fees collected under section 1930(a)(1)(A) of Title 28, United States Code, are allocated after trustee compensation. Of the remaining fees, $63.51 is deposited into the special fund of the Treasury established under section 1931 of Title 28, United States Code. An additional $25.00 is deposited into the special fund established in accordance with section 10101(b) of the Deficit Reduction Act of 2005. Finally, $51.49 is deposited into the United States Trustee System Fund established under section 589a of Title 28, United States Code. Section 589a of Title 28, United States Code, is amended to reflect the allocation of $51.49 of fees collected. Subparagraphs (B) and (C) of subsection (f)(1) are removed, and subparagraph (D) is redesignated as (B).

What does BANKRUPTCY FEES. of Bankruptcy Administration Improvement Act of 2025 do?

This section modifies bankruptcy fees as outlined in Title 28 of the United States Code. It amends Section 1930(a)(6)(B) to change the timeframe from a '5-year' period to a '10-year' period. The calculation of fees under Section 1930(a)(6)(B) is adjusted, inserting 'the greater of' and changing the 'and' to 'or' in specific subclauses. Section 589a(f) is amended, replacing '2026' with '2031' to extend a period. For fiscal years 2026 through 2031, fees collected under Section 1930(a)(6) are to be deposited as specified in Section 589a(f), with a portion deposited into the general fund of the Treasury. Specifically, $5,400,000 of these fees will be deposited into the general fund of the Treasury each year from 2026 through 2031.

What does EXTENSION OF TERM OF CERTAIN TEMPORARY OFFICES OF of Bankruptcy Administration Improvement Act of 2025 do?

This section amends the Bankruptcy Administration Improvement Act of 2020 and the Bankruptcy Judgeship Act of 2017. The amendments extend the term of certain temporary offices from 5 years to 10 years. These changes are made across multiple subsections within both Acts, specifically within subsections (a), (b), (c), (d), (e), and (f).

What does > EFFECTIVE DATE; APPLICATION OF of Bankruptcy Administration Improvement Act of 2025 do?

This Act's amendments generally take effect on the first day of the calendar quarter following enactment. However, section 3's amendments apply to cases commenced on or after October 1 following enactment, specifically those under chapter 7 or converted from chapters 11, 12, or 13 to chapter 7 of title 11. Section 4's amendments apply to chapter 11 cases commencing or pending on the first day of the calendar quarter following enactment, and to quarterly fees payable under section 1930(a)(6) of title 28, as amended by section 4. The bill was passed by the Senate on December 10, 2025, and by the House on January 12, 2026.

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Bankruptcy Administration Improvement Act of 2025

Last updated: 2/6/2026 · Introduced: 12/10/2025

Author: Christopher Coons (D-DE)

TL;DR (AI)

This bill increases compensation for Chapter 7 bankruptcy trustees from $60 to $120 per case to account for inflation and ensure fair payment.
The bill modifies bankruptcy fee calculations and allocations, directing specific amounts of collected fees to the United States Trustee System Fund, a special Treasury fund, and the general fund of the Treasury.
The bill extends the terms of certain temporary bankruptcy judge offices from five to ten years, amending related legislation.

119th CongressenactedHR. 3867(In Committee)Official page

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Other Sections

Includes provisions on preamble, <<note: 28 usc 1 note.>> short title., and 5 more.

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