What does Preamble of S 3424 do?

This section amends titles 11 and 28 of the United States Code. It modifies compensation for trustees in chapter 7 bankruptcy cases. It extends the terms of temporary bankruptcy judge offices. The Act is enacted by the Senate and House of Representatives.

What does SHORT TITLE. of S 3424 do?

This Act has a short title The short title is for citation purposes

What does FINDINGS. of S 3424 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 trustees are considered vital to the bankruptcy process, administering cases and returning assets to creditors. Since 1994, the compensation for chapter 7 trustees has remained at $60 per case, despite increases in other bankruptcy-related costs. This Act aims to increase chapter 7 trustee compensation to $120 per case, a level considered appropriate and proportionate to what was intended in 1994. The Act also intends to ensure adequate funding for the United States trustee system and support existing bankruptcy judgeships. The Act will not change the chapter 7 filing fee or alter the authority of courts to waive fees for indigent individuals.

What does TRUSTEE COMPENSATION. of S 3424 do?

This section amends trustee compensation in title 11, United States Code. The amendment changes the compensation amount from $45 to $105. It also modifies the distribution of remaining fees collected under section 1930(a)(1)(A). Fees are deposited into three funds: a Treasury special fund, a Deficit Reduction Act fund, and the United States Trustee System Fund. The United States Trustee System Fund is amended to reflect the new fee distribution.

What does BANKRUPTCY FEES. of S 3424 do?

This section modifies bankruptcy fees. Section 1930(a)(6)(B) of title 28, United States Code, is amended to change the calculation of quarterly fees, including altering the timeframe from '5-year' to '10-year'. The calculation of fees under section 1930(a)(6)(B) is adjusted, inserting 'the greater of' before '0.4' and changing '0.8' to '0.9'. Section 589a(f) of title 28, United States Code, is amended to change the period for deposits from 2026 to 2031. For fiscal years 2026 through 2031, fees collected under section 1930(a)(6) of title 28 will be deposited as specified in section 589a(f) of title 28. During those same fiscal years, $5,400,000 of collected fees will be deposited into the general fund of the Treasury.

What does EXTENSION OF TERM OF CERTAIN TEMPORARY OFFICES OF BANKRUPTCY of S 3424 do?

This section amends the Bankruptcy Administration Improvement Act of 2020 It extends the term of certain temporary offices of bankruptcy judges The term is extended from 5 years to 10 years in multiple subsections Similar amendments are made to the Bankruptcy Judgeship Act of 2017 The changes apply to various subsections and subparagraphs

What does EFFECTIVE DATE; APPLICATION OF AMENDMENTS. of S 3424 do?

The amendments made by this Act take effect on the first day of the calendar quarter after enactment. Exceptions apply to compensation of officers and bankruptcy fees. Section 3 amendments apply to cases under title 11, United States Code, commenced on or after October 1 after enactment. Section 4 amendments apply to cases under chapter 11 and quarterly fees payable under section 1930(a)(6). The effective date depends on the type of case and the date of enactment.

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Bankruptcy Administration Improvement Act of 2025 — S. 3424

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 $45 to $105 per case, aiming to reflect costs and ensure fair allocation of expenses.
The bill modifies bankruptcy fee calculations and distribution, extending the timeframe for certain calculations from five to ten years and adjusting fee percentages.
It extends the terms of temporary bankruptcy judge offices from five to ten years, amending both the Bankruptcy Administration Improvement Act of 2020 and the Bankruptcy Judgeship Act of 2017.

119th CongressenactedHR. 3867(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 5 more.

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