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S 1659
Recent Bills/S 1659

Bankruptcy Administration Improvement Act of 2025

IntroducedMay 7, 2025
Passed Senate1 year ago
Intro
Senate
House
Pres
Waiting for a House floor vote.
It was held at the desk rather than sent to a committee, so it can be taken up directly.
Finance and Financial SectorBankruptcyFinancial services and investmentsSpecialized courtsUser charges and fees
More:Bills That Passed the SenateSenate Bills
Why This Matters

This bill raises the compensation for trustees in chapter 7 bankruptcy. It also changes how bankruptcy fees are divided and extends the terms of certain temporary bankruptcy judges.

Who this affects
trustees handling bankruptcies · bankruptcy courts · bankruptcy judges · debtors and creditors
What changes is this bill making?
  1. 1Raises the flat fee paid to chapter 7 bankruptcy trustees from $60 to $120 per case.
  2. 2Specifies how filing fees are split among a Treasury special fund, a deficit reduction fund, and the United States Trustee System Fund.
  3. 3Increases the share of fees sent to the United States Trustee System Fund to 28.33 percent of certain collected fees.
  4. 4Extends the period for calculating quarterly fees in chapter 11 cases from five to ten years and raises the rate from 0.8 to 1.1.
  5. 5Extends the terms of temporary bankruptcy judgeships from five years to ten years.
  6. 6Sets most changes to take effect on the October 1 after the bill becomes law, with special rules for ongoing cases and pending fees.
Read the detailed summary

Bankruptcy Administration Improvement Act of 2025This 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.

Read full document
Bill Progress3 of 4
Bills must pass the House, Senate, and be signed by the President to become law.
Intro
Senate
House
Pres
IntroducedMay 7, 2025
Sponsors
See all 11 sponsors
SenateAug 1, 2025
HouseCurrent

Waiting for a House floor vote.

It was held at the desk rather than sent to a committee, so it can be taken up directly.

President

The President

Donald Trump
President
Awaiting Vote
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