Bankruptcy Administration Improvement Act of 2025

It strengthens funding for trustees, courts, and bankruptcy administration without raising Chapter 7 filing fees or restricting fee waivers.

What the law does ​

• Raises Chapter 7 trustee compensation from $60 to $120 per eligible case, including cases converted to Chapter 7.
• Applies the compensation increase to covered cases filed on or after the first October 1 following enactment.
• Revises Chapter 11 quarterly fees and sends $5.4 million annually to the Treasury’s general fund from fiscal years 2026 through 2031.
• Continues specified funding for the United States Trustee System and related bankruptcy operations through 2031.
• Extends certain temporary bankruptcy judgeships from five years to ten years.

Who it affects ​

• Chapter 7 bankruptcy trustees.
• Chapter 7 and Chapter 11 bankruptcy filers.
• Bankruptcy courts, temporary bankruptcy judges, and the United States Trustee System.

Breakdown ​

Bankruptcy Administration Improvement Act of 2025 ​

The law increases total compensation for Chapter 7 bankruptcy trustees from $60 to $120 per case and reallocates bankruptcy fee revenue to support trustees, courts, and the United States Trustee System. It also revises Chapter 11 quarterly fees, continues specified funding arrangements through 2031, and extends certain temporary bankruptcy judgeships from five years to ten years. It does not increase the Chapter 7 filing fee or limit courts’ authority to waive filing fees for indigent individuals.

Key takeaways

• Chapter 7 trustees will receive total compensation of $120 per eligible case, including cases converted to Chapter 7.
• The trustee compensation changes apply to covered cases commenced on or after the first October 1 following enactment.
• The law revises Chapter 11 quarterly fee calculations and directs $5.4 million of those fees annually to the Treasury’s general fund for fiscal years 2026 through 2031.
• Specified deposits supporting the United States Trustee System and related bankruptcy operations are continued through 2031.
• Certain temporary bankruptcy judgeships created or continued under earlier laws are extended from five-year terms to ten-year terms.
• The law leaves the Chapter 7 filing fee unchanged and preserves courts’ authority to waive filing fees for indigent individuals.