Bankruptcy Administration Improvement Act of 2025
Term Dictionary
If you come across any unfamiliar words while reading, these resources can help make everything clearer. Pick whichever one works best for you!
- Congress.gov Legislative Glossary - Comprehensive congressional terms
- NVFC Congressional Terms Glossary - Concise, easy-to-understand definitions
The gist
Bankruptcy trustees who manage Chapter 7 cases get their first pay raise in 31 years, while corporate bankruptcy fees rise and temporary judges keep their seats longer.
Who wins, who loses
Wins: Chapter 7 trustees (pay doubles), bankruptcy courts gaining staffing stability, creditors awaiting faster case resolution.
Loses: Large companies in Chapter 11 paying higher quarterly fees (top rate rises from 0.8% to 0.9% of disbursements).
What it does
Raises trustee pay under Section 330 of Title 11 from $45 to $105, bringing total per-case pay to $120.
Locks in fixed fee splits: $63.51 to Treasury, $25 to deficit fund, $51.49 to US Trustee System Fund.
Extends temporary bankruptcy judgeships from 5-year to 10-year terms under 2017 and 2020 laws.
Keeps filing fees unchanged and preserves fee waivers for low-income filers.
Why should I care?
Supporters say trustees doing front-line work haven't seen a raise since grunge was new, and inflation made $60 worth half what it used to be. Critics worry raising Chapter 11 quarterly fees adds costs onto struggling businesses already in bankruptcy. The system is taxpayer-free by design ā€” users fund it. Where do you land? Vote below and use "Tell Your Rep" to make sure your voice reaches Congress.