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Bankruptcy System Overhaul: Trustee Pay Hike, Judge Term Extension

This act aims to improve the US bankruptcy system. It increases compensation for individuals managing bankruptcy cases, ensuring better service. It also extends the terms of temporary bankruptcy judge positions to help courts handle cases more efficiently. These changes are designed to keep the bankruptcy system self-funded, without burdening taxpayers.
Key points
Increased compensation for Chapter 7 bankruptcy trustees from $60 to $120 per case, aiming to improve service quality.
Extension of temporary bankruptcy judgeship terms by 5 years (from 5 to 10 years), ensuring continuity and efficiency in courts.
Adjustments to bankruptcy system funding to maintain its self-sufficiency and avoid taxpayer burden.
The act does not alter bankruptcy filing fees or the ability for low-income individuals to waive fees.
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Status: Introduced
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Additional Information
Print number: 119_HR_3867
Sponsor: Rep. Cline, Ben [R-VA-6]
Process start date: 2025-06-10
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Bankruptcy Administration Improvement Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3867.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-06-10.

What are the main provisions?

Key points include:

  • Increased compensation for Chapter 7 bankruptcy trustees from $60 to $120 per case, aiming to improve service quality.
  • Extension of temporary bankruptcy judgeship terms by 5 years (from 5 to 10 years), ensuring continuity and efficiency in courts.
  • Adjustments to bankruptcy system funding to maintain its self-sufficiency and avoid taxpayer burden.
  • The act does not alter bankruptcy filing fees or the ability for low-income individuals to waive fees.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Cline, Ben [R-VA-6].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on the Judiciary.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Courts and Law Economy