Bankruptcy Administration Improvement Act of 2025

Key Points

• This bill doubles the pay for Chapter 7 bankruptcy trustees from $60 to $120 per case. These trustees are the people who manage the paperwork and assets when someone or a small business goes through bankruptcy. Their pay has not been raised since 1994, even though the cost of living has gone up significantly.
• The plan keeps the bankruptcy system self-funded, meaning it will not cost taxpayers any money. The extra pay for trustees will come from fees already in the system and a small increase in the quarterly fees paid by larger businesses that are reorganizing their debts.
• It extends the terms of several temporary bankruptcy judges for five more years. This helps the courts handle the large number of cases without falling behind or needing to hire and train new judges immediately.
• People filing for bankruptcy will not see an increase in their personal filing fees. The bill also protects the ability of courts to forgive fees for people who are struggling financially and cannot afford to pay.
• If passed, these changes would mostly take effect on October 1st after the bill becomes law. The goal is to make sure the bankruptcy process stays fair and efficient by paying the people who run it a more modern wage.

Impact Analysis

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