Bankruptcy Administration Improvement Act of 2025
Sponsored By: Senator Coons, Christopher A. [D-DE]
Became Law
Summary
Boosts pay for Chapter 7 trustees and redirects bankruptcy fee revenue to better fund the U.S. Trustee system. This law also extends temporary bankruptcy judge offices and clarifies how fee changes take effect across districts.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Higher pay for Chapter 7 trustees
The law raises Chapter 7 trustee pay to $120 per case. Trustees receive $105 from the main per‑case payment and $15 from the existing $15 payment. After paying the trustee, the rest of the filing fee is split: $63.51 to a Treasury special fund, $25.00 to the Deficit Reduction Act fund, and $51.49 to the U.S. Trustee System Fund. This applies to Chapter 7 cases, and cases converted to Chapter 7, that start on or after the first October 1 after enactment.
Temporary bankruptcy judges serve longer
Temporary bankruptcy judges now serve 10 years instead of 5. The statutes are updated to replace “5 years” with “10 years.” This takes effect on the first day of the next calendar quarter after enactment.
When these changes take effect
Most changes take effect on the first day of the next calendar quarter after enactment. Some sections have different start dates listed in Section 6(b), including the trustee pay and quarterly fee changes.
New rules for Chapter 11 fees
The law changes how quarterly Chapter 11 fees are set. It uses a 10‑year lookback instead of 5 years. It adds “the greater of 0.4” and changes “and” to “or” in one test, and raises another test threshold from 0.8 to 0.9. The rules apply to cases on the first day of the next calendar quarter and to fees for quarters that begin after enactment.
Some Chapter 11 fees go to Treasury
For fiscal years 2026–2031, $5.4 million of Chapter 11 quarterly fees each year goes to the Treasury general fund. The rest of those fees are deposited under the usual rules in 28 U.S.C. 589a(f). The deposit period in that section is extended from 2026 to 2031.
Sponsors & CoSponsors
Sponsor
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.gov