Bankruptcy Administration Improvement Act of 2025
Sponsored By: Representative Rep. Cline, Ben [R-VA-6]
Introduced
Summary
Would raise Chapter 7 trustee pay to $105 per case and reshape how bankruptcy fees are shared to shore up trustee operations and Treasury accounts. It would also extend temporary bankruptcy judge appointments from 5 years to 10 years to give courts more stability as caseloads grow.
Show full summary
- Trustees: Chapter 7 trustees would see their per-case compensation increase from $45 to $105 and a prior pay component would be repealed, raising take-home pay per case.
- Courts and judges: Temporary bankruptcy judge positions created to address caseload growth would have 10-year terms instead of 5, so districts keep experienced judges longer.
- Funds and filers: The bill reallocates bankruptcy fee receipts, caps certain Trustee System deposits at 28.3 percent, and directs $5.4 million a year from quarterly bankruptcy fees to the Treasury general fund for 2026–2031. It also preserves existing Chapter 7 filing fees and the authority to waive fees for indigent filers.
*Would redirect specific bankruptcy fee receipts, including $5.4 million annually for 2026–2031, and set a 28.3% cap on certain Trustee System deposits.*
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Longer terms for bankruptcy judges
If enacted, some temporary bankruptcy judgeships would last 10 years instead of 5. This would begin on the first October 1 after enactment and could help courts handle cases without gaps.
When these bankruptcy changes start
If enacted, most changes would start on the first October 1 after the bill is signed. The trustee pay change would apply to Chapter 7 cases filed on or after that date, and to Chapter 11, 12, or 13 cases that start then and later convert to Chapter 7. The fee and deposit changes would apply to Chapter 11 cases pending on or after that date, and to quarterly fees for disbursements in quarters that begin on or after that date.
Changes to bankruptcy fees and trustee pay
If enacted, Chapter 7 trustee pay would rise from $45 to $105 per case. After paying trustees, the rest of each Chapter 7 filing fee would be split: $63.51 to one Treasury fund, $25.00 to a 2005 Treasury fund, and $51.49 to the U.S. Trustee System Fund. Also, 28.33% of certain other bankruptcy fees would go to the Trustee System Fund. For Chapter 11, quarterly fee rules would run for 10 years instead of 5, and one rate number would increase from 0.8 to 1.1. From fiscal years 2026 through 2031, $5.4 million a year from those quarterly fees would go to the Treasury’s general fund, with the remainder deposited as specified. Most of these changes would start on the first October 1 after enactment.
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Sponsors & CoSponsors
Sponsor
Rep. Cline, Ben [R-VA-6]
VA • R
Cosponsors
Rep. Ivey, Glenn [D-MD-4]
MD • D
Sponsored 6/10/2025
Rep. Grothman, Glenn [R-WI-6]
WI • R
Sponsored 6/12/2025
Rep. Castor, Kathy [D-FL-14]
FL • D
Sponsored 6/12/2025
Rep. Gooden, Lance [R-TX-5]
TX • R
Sponsored 7/10/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 7/10/2025
Bynum
OR • D
Sponsored 7/16/2025
Harris (NC)
NC • R
Sponsored 8/29/2025
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 9/16/2025
Mannion
NY • D
Sponsored 9/16/2025
Lee (FL)
FL • R
Sponsored 9/16/2025
Rep. Correa, J. Luis [D-CA-46]
CA • D
Sponsored 12/9/2025
Rutherford
FL • R
Sponsored 12/16/2025
Roll Call Votes
No roll call votes available for this bill.
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