Bankruptcy Administration Improvement Act of 2025

This bill, the Bankruptcy Administration Improvement Act of 2025, aims to enhance the financial stability and operational efficiency of the United States bankruptcy system. It proposes significant changes to Chapter 7 bankruptcy trustee compensation , adjusts various bankruptcy fees, and extends the terms of temporary bankruptcy judgeships. These measures are designed to ensure the system remains self-funded and effectively managed. A primary focus is increasing the per-case compensation for Chapter 7 trustees from $45 to $105, resulting in a total of $120 per case, acknowledging that their pay has not risen since 1994. The bill also reallocates how remaining fees from bankruptcy cases are deposited into various special funds, including the United States Trustee System Fund , to better support the system's infrastructure. Additionally, the legislation modifies quarterly fees in Chapter 11 cases by extending certain calculation periods from 5 to 10 years and increasing the percentage rate from 0.8% to 1.1%. It also extends the deposit period for the United States Trustee System Fund until 2031. These adjustments aim to provide stable and adequate funding for the bankruptcy system. To maintain judicial capacity, the bill extends the terms of several temporary bankruptcy judgeships from 5 years to 10 years, addressing existing and anticipated caseload increases. The amendments generally become effective on October 1st following enactment, with specific application rules for trustee compensation and bankruptcy fees.