S1659119th CongressWALLET

Bankruptcy Administration Improvement Act of 2025

Sponsored By: Senator Sen. Coons, Christopher A. [D-DE]

Passed Senate

Summary

Raises trustee pay and reshapes bankruptcy fee splits. This bill would nearly double per-case Chapter 7 trustee pay and rewrite how bankruptcy filing fees are calculated and shared among Treasury and trustee-related funds.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

Longer temporary terms for judges

If enacted, the bill would extend certain temporary bankruptcy judge appointment terms from 5 years to 10 years. The change would apply in the listed temporary offices and in a related 2017 judgeship provision by replacing '5 years' with '10 years'. This is a procedural change meant to keep judges in place longer and reduce turnover.

Higher pay for Chapter 7 trustees

If enacted, the bill would raise the flat per-case payment to Chapter 7 trustees from $45 to $105. The existing $15 per case from the other statutory subsection would remain, making a combined $120 payment per case. This change would apply to Chapter 7 cases (and cases converted to Chapter 7) that start on or after the first October 1 after enactment. Trustee pay comes from the bankruptcy estate or related fee pool and could affect distributions or case costs.

Higher Chapter 11 quarterly fees

If enacted, the bill would change how Chapter 11 quarterly fees are calculated. It would use a 10-year lookback instead of 5 years and raise a multiplier from 0.8 to 1.1. The changes would apply to Chapter 11 cases pending on or after the effective date and to quarters starting on or after that date. For fiscal years 2026 through 2031, $5,400,000 of those fees each year would go to the Treasury general fund, with the remainder deposited as the law specifies.

New split of bankruptcy filing fees

If enacted, the bill would set fixed dollar splits for the remainder of certain filing fees after trustee pay. For cases starting on or after the effective date, the remainder of fees under one filing category would be split per case: $63.51 to a Treasury special fund, $25.00 to a Deficit Reduction Act special fund, and $51.49 to the United States Trustee System Fund. The bill would also set the Trustee System Fund to receive 28.33% of a separate fee category.

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Sponsors & CoSponsors

Sponsor

Sen. Coons, Christopher A. [D-DE]

DE • D

Cosponsors

  • Sen. Graham, Lindsey [R-SC]

    SC • R

    Sponsored 5/7/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 5/7/2025

  • Sen. Blackburn, Marsha [R-TN]

    TN • R

    Sponsored 5/7/2025

  • Sen. Tillis, Thomas [R-NC]

    NC • R

    Sponsored 7/10/2025

  • Rep. Slotkin, Elissa [D-MI-7]

    MI • D

    Sponsored 7/10/2025

  • Sen. Budd, Ted [R-NC]

    NC • R

    Sponsored 7/10/2025

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 7/10/2025

  • Sen. Scott, Rick [R-FL]

    FL • R

    Sponsored 7/10/2025

  • Sen. Moody, Ashley [R-FL]

    FL • R

    Sponsored 7/10/2025

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 7/10/2025

Roll Call Votes

No roll call votes available for this bill.

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