The bill seeks to increase the compensation for chapter 7 bankruptcy trustees from $60 to $120 per case. It aims to support the United States Trustee System Fund and preserve existing bankruptcy judgeships. Additionally, it proposes changes to quarterly fees and the period for fee deposits. The bill also extends the temporary offices of bankruptcy judges to 10 years. The effective date of these amendments will be determined based on the type of bankruptcy case or fee schedule.
Bankruptcy Administration Improvement Act of 2025
This bill makes several changes to the administration of bankruptcy cases, particularly by increasing certain fees, extending the sunset date of various fees, and extending the term of specified bankruptcy judgeships.
The bill increases the fees paid to the trustee in Chapter 7 (liquidation) cases.
The bill extends for an additional five years the fees paid quarterly to the U.S. trustee in Chapter 11 (reorganization) cases. The bill also increases the fee percentage for cases with large disbursements, subject to limitations.
Finally, temporary bankruptcy judgeships in various districts are extended for an additional five years.