Congress·Passed Senate·S. 1659

Congress moves to raise Chapter 7 trustee pay and increase Chapter 11 quarterly fees

Bankruptcy Administration Improvement Act of 2025

8 months ago·View on Congress.gov

Part of: Bankruptcy Administration Improvement Act of 2025

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Stalled

No legislative action in over 90 days.

Legislative Progress

✓ Senate

House

President

Law

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.

EconomyConsumer ProtectionSmall Business

Milestones

4 milestones9 actions

Aug 8, 2025House

Held at the desk.

Aug 8, 2025House

Received in the House.

Aug 8, 2025Senate

Message on Senate action sent to the House.

Aug 1, 2025Senate

Passed Senate with an amendment by Unanimous Consent. (text: CR S5475-5476)

Aug 1, 2025

Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent. (text: CR S5475-5476)

What Happens Next

Projected impacts based on AI analysis

On October 1 that first occurs after the bill is enacted

New Chapter 7 trustee pay rules start for new cases

If you file Chapter 7 (or convert into Chapter 7) on or after this date, the trustee assigned to your case is paid $120 per case instead of $60; your Chapter 7 filing fee is not changed by this bill.

On October 1 that first occurs after the bill is enacted (applies to cases pending on or after that date)

Higher Chapter 11 quarterly fee rules start for pending and new cases

If a business is already in Chapter 11 or enters Chapter 11 by this point, it may owe higher quarterly bankruptcy fees going forward, which can reduce cash available for operations and repayments.

First calendar quarter that begins on or after October 1 after enactment

Quarterly fees apply based on disbursements in quarters starting after the start date

Even if a Chapter 11 case began earlier, higher fees apply to money paid out in any calendar quarter that begins on or after the start date.

Starting in federal fiscal year 2026 (Oct 2025–Sep 2026) and continuing through fiscal year 2031, once the fee changes are in effect

Required yearly deposit of $5.4 million from certain quarterly fees into the Treasury general fund begins

A set slice of the collected Chapter 11 quarterly fees is redirected each year to the government’s main checking account, which can reduce what stays in the bankruptcy trustee system funds.

Over the next decade after the effective date

Extended time window for higher quarterly fee schedule runs longer

Businesses in Chapter 11 may face the heightened quarterly fee structure for up to 10 years instead of 5, depending on how the underlying schedule is applied to their case timing.

As current temporary terms would otherwise expire, extended out to 10 years

Temporary bankruptcy judge offices remain authorized for longer terms

Bankruptcy courts can keep certain judgeships for up to 10 years instead of 5, which can help prevent slowdowns and hearing delays for people and businesses in bankruptcy.