Bankruptcy Administration Improvement Act of 2025

This bill updates how the bankruptcy system pays key workers and handles fees, to keep the system running without extra cost to taxpayers. It raises the pay for Chapter 7 bankruptcy trustees from $60 to $120 per case, helping them cover today’s costs and keep cases moving. It does not raise the Chapter 7 filing fee and keeps judges’ power to waive fees for people who can’t afford them. It also adjusts where certain bankruptcy fees go so the courts and trustee program stay funded, and sets a temporary rule for 2026–2031 that directs some of these fees, including $5.4 million each year, to the general Treasury . To handle caseloads, it extends the term of several temporary bankruptcy judgeships from five to ten years.

• Who is affected: People and small businesses in bankruptcy, Chapter 7 trustees, and bankruptcy courts and judges.
• What changes: Trustee pay increases to $120 per case; fee rules are updated to keep the system self-funded; temporary judgeships are extended to 10 years; Chapter 7 filing fees and fee waivers stay the same .
• When: Most changes start on October 1 following the date it becomes law. Trustee pay changes apply to new Chapter 7 cases (including cases converted to Chapter 7) from that date. The fee changes apply to cases pending on or after that date and to quarterly fees for quarters that begin after that date.