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119-s-1659119th Congress

Bankruptcy Administration Improvement Act of 2025

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

Passed Senate

Summary

Boosts trustee pay and restructures fee funding for the United States Trustee System. This bill would raise Chapter 7 trustee compensation, reallocate bankruptcy fees to new funds, change quarterly deposit rules, and extend temporary bankruptcy judgeships to 10 years.

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  • Chapter 7 trustees: Total per-case compensation would increase to $120 per case, raising the routine pay trustees receive for each closed Chapter 7 matter.
  • United States Trustee System and federal funds: The bill redirects fee flows, including a 28.3 percent share of certain fees to the United States Trustee System Fund and a $5.4 million general fund set-aside for each fiscal year 2026–2031.
  • Filers and fees: It revises filing and quarterly fee schedules and creates new deposit requirements and extended deposit periods for fiscal years 2026–2031 while preserving the base Chapter 7 filing fee and indigent waiver authority.
  • Bankruptcy judges: Temporary bankruptcy judge terms are extended to 10 years across multiple statutory provisions, preserving existing judgeships.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Longer terms for temporary bankruptcy judges

If enacted, some temporary bankruptcy judges would serve 10 years instead of 5. This would start on the first October 1 after enactment. Keeping judges longer would help continuity and court capacity for bankruptcy cases.

Higher pay for Chapter 7 trustees

If enacted, trustee pay in Chapter 7 cases would rise from $45 to $105 per case. This would apply to new Chapter 7 cases and to cases converted to Chapter 7 that start on or after the first October 1 after enactment. The bill would also repeal a rule at 11 U.S.C. 330(e) that limits trustee compensation. These changes would raise costs paid from bankruptcy estates and, in some cases, by filers.

New splits and formulas for bankruptcy fees

If enacted, after trustee pay, fees under 28 U.S.C. 1930(a)(1)(A) would be split as $63.51 to a Treasury special fund, $25.00 to a Deficit Reduction Act fund, and $51.49 to the U.S. Trustee System Fund. 28.33% of fees under 1930(a)(1)(B) would go to the U.S. Trustee System Fund. For fiscal years 2026–2031, $5,400,000 a year of quarterly fees under 1930(a)(6) would go to the Treasury general fund, with the rest deposited as amended. The Chapter 11 quarterly fee formula would change by using 10 years instead of 5 and a factor of 1.1 instead of 0.8, for quarters that begin on or after the first October 1 after enactment. These changes would increase some administrative and quarterly fees compared with current rules, for cases and quarters starting on or after that date.

Sponsors & CoSponsors

Sponsor

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

  • Sen. Slotkin, Elissa [D-MI]

    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.

View on Congress.gov
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