Bankruptcy Administration Improvement Act of 2025
Sponsored By: Senator Sen. Coons, Christopher A. [D-DE]
Became Law
Summary
Raises trustee compensation and fixes bankruptcy fee funding. This law increases per-case pay for Chapter 7 trustees and reorganizes how bankruptcy filing fees are split to stabilize funding for the U.S. Trustee System and related special funds.
Show full summary
- Trustees: Chapter 7 trustees see per-case pay rise from $45 to $105 and the former extra per-case payment under subsection (e) is removed.
- U.S. Trustee System Fund: The act replaces the prior percentage method with a fixed $51.49 per-case contribution to the U.S. Trustee System Fund, making that revenue stream predictable.
- Special funds and judges: After trustee pay, filing-fee dollars are redirected with $63.51 to a Treasury special fund and $25.00 to the Deficit Reduction Act special fund. The law also extends certain temporary bankruptcy judge terms and aims to preserve judgeships amid rising caseloads.
*Maintains the bankruptcy system's self-funding by fixing and redirecting fee allocations, avoiding new direct taxpayer funding for bankruptcy administration.*
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Higher Chapter 11 quarterly fees
The law changes how Chapter 11 quarterly fees are calculated. It uses a 10‑year lookback instead of 5 years and adjusts key numbers (adds “the greater of 0.4” and raises 0.8 to 0.9). Many businesses in Chapter 11 pay higher quarterly fees under these rules. The new formula applies to cases that are started or pending on the first day of the next calendar quarter, and to fees on disbursements in quarters after enactment. For fiscal years 2026–2031, $5.4 million of these fees each year goes to the Treasury’s general fund.
Longer terms for bankruptcy judges
Temporary bankruptcy judges now serve up to 10 years, not 5. The change takes effect on the first day of the calendar quarter after enactment.
Chapter 7 trustee pay rises; add-on ends
Chapter 7 trustees now get $105 per case, up from $45. The law ends the extra per‑case payment in 11 U.S.C. 330(e). After paying trustees, each case’s filing fee is split: $63.51 to the 28 U.S.C. 1931 fund, $25.00 to the Deficit Reduction Act fund, and $51.49 to the U.S. Trustee System Fund. These changes apply to cases started on or after the first October 1 after enactment, and to cases converted to Chapter 7.
Free Policy Watch
You just read the policy. Now see what it costs you.
Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.
Pick a topic to get started
Sponsors & CoSponsors
Sponsor
Sen. Coons, Christopher A. [D-DE]
DE • D
Cosponsors
Sen. Graham, Lindsey [R-SC]
SC • R
Sponsored 12/10/2025
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 12/10/2025
Sen. Blackburn, Marsha [R-TN]
TN • R
Sponsored 12/10/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in