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Bankruptcy Administration Improvement Act of 2025

USA119th CongressHR-3867| House 
| Updated: 6/10/2025
Ben Cline

Ben Cline

Republican Representative

Virginia

Cosponsors (12)
John W. Mannion (Democratic)Lance Gooden (Republican)Eugene Simon Vindman (Democratic)J. Luis Correa (Democratic)Janelle S. Bynum (Democratic)Glenn Ivey (Democratic)Glenn Grothman (Republican)John H. Rutherford (Republican)Laurel M. Lee (Republican)Kathy Castor (Democratic)Mark Harris (Republican)Michael Lawler (Republican)

Judiciary Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
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.
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Timeline

Bill from Previous Congress

HR 116-8895
Bankruptcy Administration Improvement Act of 2020

Bill from Previous Congress

HR 118-9154
Bankruptcy Administration Improvement Act of 2024
Jun 10, 2025
Introduced in House
Jun 10, 2025
Referred to the House Committee on the Judiciary.
Aug 8, 2025

Latest Companion Bill Action

S 119-1659
Held at the desk.
  • Bill from Previous Congress

    HR 116-8895
    Bankruptcy Administration Improvement Act of 2020


  • Bill from Previous Congress

    HR 118-9154
    Bankruptcy Administration Improvement Act of 2024


  • June 10, 2025
    Introduced in House


  • June 10, 2025
    Referred to the House Committee on the Judiciary.


  • August 8, 2025

    Latest Companion Bill Action

    S 119-1659
    Held at the desk.

Finance and Financial Sector

Related Bills

  • S 119-3424: Bankruptcy Administration Improvement Act of 2025
  • S 119-1659: Bankruptcy Administration Improvement Act of 2025
BankruptcyFinancial services and investmentsSpecialized courtsUser charges and fees

Bankruptcy Administration Improvement Act of 2025

USA119th CongressHR-3867| House 
| Updated: 6/10/2025
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.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

HR 116-8895
Bankruptcy Administration Improvement Act of 2020

Bill from Previous Congress

HR 118-9154
Bankruptcy Administration Improvement Act of 2024
Jun 10, 2025
Introduced in House
Jun 10, 2025
Referred to the House Committee on the Judiciary.
Aug 8, 2025

Latest Companion Bill Action

S 119-1659
Held at the desk.
  • Bill from Previous Congress

    HR 116-8895
    Bankruptcy Administration Improvement Act of 2020


  • Bill from Previous Congress

    HR 118-9154
    Bankruptcy Administration Improvement Act of 2024


  • June 10, 2025
    Introduced in House


  • June 10, 2025
    Referred to the House Committee on the Judiciary.


  • August 8, 2025

    Latest Companion Bill Action

    S 119-1659
    Held at the desk.
Ben Cline

Ben Cline

Republican Representative

Virginia

Cosponsors (12)
John W. Mannion (Democratic)Lance Gooden (Republican)Eugene Simon Vindman (Democratic)J. Luis Correa (Democratic)Janelle S. Bynum (Democratic)Glenn Ivey (Democratic)Glenn Grothman (Republican)John H. Rutherford (Republican)Laurel M. Lee (Republican)Kathy Castor (Democratic)Mark Harris (Republican)Michael Lawler (Republican)

Judiciary Committee

Finance and Financial Sector

Related Bills

  • S 119-3424: Bankruptcy Administration Improvement Act of 2025
  • S 119-1659: Bankruptcy Administration Improvement Act of 2025
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
BankruptcyFinancial services and investmentsSpecialized courtsUser charges and fees