Bankruptcy Administration Improvement Act of 2025
Sponsors
Legislative Progress
IntroducedMr. Coons (for himself, Mr. Graham, Mr. Booker, and Mrs. …
Passed Senate (inferred from es version)
Summary
What This Bill Does
This bill increases compensation for Chapter 7 bankruptcy trustees from $60 to $120 per case - the first increase since 1994. It also extends temporary bankruptcy judgeships from 5 to 10 years and adjusts various bankruptcy fees to ensure the bankruptcy system remains self-funding without taxpayer subsidy.
Who Benefits and How
Chapter 7 bankruptcy trustees benefit from doubled compensation, addressing 30 years of stagnant pay. The federal courts system benefits from extended bankruptcy judgeships to handle caseloads. Creditors (including IRS, USDA, SBA, state governments, and private creditors) benefit from continued trustee administration of cases.
Who Bears the Burden and How
Chapter 11 debtors face increased quarterly fees (fee increase from 0.8% to 1.1%). A portion of fees ($5.4 million annually) goes to the general Treasury. The changes are designed to keep the bankruptcy system self-funded by those who use it.
Key Provisions
- Increases Chapter 7 trustee compensation from $60 to $120 per case
- Extends temporary bankruptcy judgeships from 5 to 10 years (16 judgeships total)
- Increases Chapter 11 quarterly fee rate from 0.8% to 1.1%
- Extends fee provisions through 2031
- Does not change filing fees for Chapter 7 filers
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Doubles Chapter 7 bankruptcy trustee compensation from $60 to $120 per case (first increase since 1994), extends temporary bankruptcy judgeships from 5 to 10 years, and adjusts related fees to keep the bankruptcy system self-funding.
Policy Domains
Legislative Strategy
"Long-overdue compensation increase funded by fee adjustments to maintain self-funding bankruptcy system"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology