Bankruptcy Administration Improvement Act of 2025

This bill aims to keep the bankruptcy system running well without adding costs to taxpayers. It raises pay for Chapter 7 bankruptcy trustees—who handle most consumer cases—from $60 to $120 per case, noting their pay has not changed since 1994 even as other costs rose. It does not raise the Chapter 7 filing fee and keeps courts’ power to waive filing fees for people who can’t afford them . It also updates how certain fees are shared to make sure the U.S. Trustee System and courts are funded, including setting specific deposits into federal funds and a set amount to the Treasury in certain years . The bill extends the term of many temporary bankruptcy judgeships from 5 years to 10 years to help courts manage heavy caseloads .

Most changes start on the first October 1 after the bill becomes law. The trustee pay raise applies to new Chapter 7 cases (and cases converted into Chapter 7) starting on that date. The fee changes apply to Chapter 11 cases that are pending on that date and to quarterly fees for quarters beginning on or after that date .

• Who is affected: Chapter 7 trustees; people and businesses in bankruptcy; courts and the U.S. Trustee System .
• What changes: Trustee pay goes to $120 per case; funding rules adjust for stability; temporary judgeships last 10 years; no change to the Chapter 7 filing fee or fee waivers for low-income filers .
• When: Effective the first October 1 after enactment, with the specific timing rules above .