Sponsors (11)
The bill strengthens and stabilizes trustee compensation and court capacity with clearer funding rules and effective dates, but does so largely by shifting costs onto bankruptcy users and introduces risks from funding misalignment and drafting ambiguities that could cause future legal or administrative headaches.
Bankruptcy trustees (especially Chapter 7) and the U.S. Trustee System get higher and more predictable compensation and funding, improving trustee pay and sustaining administration of bankruptcy cases.
Bankruptcy courts retain judicial capacity and case continuity because judgeships are preserved and temporary bankruptcy judges can be retained longer, reducing delays for filers and creditors.
The bill preserves courts' authority to waive filing fees for indigent filers, protecting low-income people' access to bankruptcy relief.
People and businesses who use the bankruptcy system (including low‑income filers and small businesses) will face higher fees to finance trustee pay and the Trustee System, shifting costs onto financially distressed filers.
Fixing allocations in dollar amounts and extending statutory periods risks misalignment with inflation and filing volume over time, potentially reducing real funding or forcing future legislative fixes.
A drafting error in the amendment to §330(b)(1) creates legal ambiguity about trustee compensation that could prompt litigation and administrative delays.
Based on analysis of 6 sections of legislative text.
Increases chapter 7 trustee pay to $120, shifts how bankruptcy fees are split (including $5.4M/yr to Treasury for FY2026–2031), and extends temporary bankruptcy judge terms to 10 years.
Increases pay for chapter 7 bankruptcy trustees to $120 per case, changes how certain bankruptcy filing and quarterly fees are split and deposited, and extends several temporary bankruptcy judge positions from 5-year to 10-year terms. It redirects some fee receipts for fiscal years 2026–2031 to the Treasury general fund and updates timing rules for fee deposits. The Act applies on the first October 1 after enactment for most provisions and specifies which types of cases and fee quarters are covered. It does not change the basic filing fee amount or courts’ authority to waive filing fees for indigent filers.
Introduced May 7, 2025 by Christopher A. Coons · Last progress August 8, 2025