Chapter 7 bankruptcy trustees are private professionals who administer personal bankruptcy cases — reviewing assets, distributing funds to creditors, and managing the process for the millions of Americans each year who seek relief from debt. Their base pay has been frozen at $60 per case since 1994; adjusted for inflation, Congress notes that would be worth over $125 today. This bill raises trustee compensation to $120 per case, funded by a reallocation of existing court fees rather than an increase in the filing fee paid by individual filers, which is explicitly preserved at current levels. It also extends the terms of temporary bankruptcy judges from 5 to 10 years to help courts handle growing caseloads, and adjusts how quarterly fees paid by businesses in Chapter 11 (corporate reorganization) proceedings are distributed to keep the bankruptcy system self-funded through 2031.
Congressional Summary
Bankruptcy Administration Improvement Act of 2025This act makes several changes to the administration of bankruptcy cases, particularly by increasing amounts received by certain trustees, extending the sunset date of various fees, and extending the term of specified bankruptcy judgeships.(Sec. 3) The act increases the amounts paid out of fees to the trustee in Chapter 7 (liquidation) cases.(Sec. 4) The act extends for an additional five years the fees paid quarterly to the U.S. trustee in Chapter 11 (reorganization) cases. The act also increases the fee percentage for cases with large disbursements, subject to limitations. (Sec. 5) Finally, temporary bankruptcy judgeships in various districts are extended for an additional five years.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Public Law
- Action Date
- 2026-02-06
- Date Added
- 2026-06-25
- Source
- Congress.gov →
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