Bankruptcy Administration Improvement Act of 2025

Key Points

• Chapter 7 bankruptcy trustees would get a pay raise from $60 to $120 per case for most cases, starting the first Oct. 1 after the bill becomes law.
• The bill says it does not change the chapter 7 filing fee and does not take away courts’ power to waive fees for people who can’t afford them.
• Businesses in chapter 11 would pay higher quarterly bankruptcy fees, and those increased fees would run for 10 years instead of 5.
• Some of the quarterly fees would be routed to keep the bankruptcy system funded, and $5.4 million a year (FY 2026–2031) would go to the Treasury’s general fund.
• Temporary bankruptcy judge positions would be extended from 5 years to 10 years, aiming to help courts keep up with bankruptcy caseloads.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.