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Bankruptcy System Overhaul: Trustee Pay Increase and Extended Judge Terms.

This law aims to strengthen the self-funded bankruptcy system by addressing outdated compensation for trustees who handle personal bankruptcy cases (Chapter 7). It doubles the base pay for these trustees, ensuring they can effectively administer cases and return assets to creditors, including small businesses and medical providers. The necessary funding is secured by increasing quarterly fees paid by large corporate bankruptcies (Chapter 11).
Key points
Compensation for trustees handling personal bankruptcies (Chapter 7) is doubled from $60 to $120 per case, reflecting inflation since 1994 and ensuring the system remains functional.
Filing fees for individual Chapter 7 bankruptcies are not increased, and the ability for low-income individuals to waive fees remains protected.
Terms for temporary bankruptcy judges are extended from 5 to 10 years to maintain court capacity and efficiently manage increasing consumer and business caseloads.
article Official text account_balance Process page
Passed Senate
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1659
Sponsor: Sen. Coons, Christopher A. [D-DE]
Process start date: 2025-05-07
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
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_S_1659.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-07.

What are the main provisions?

Key points include:

  • Compensation for trustees handling personal bankruptcies (Chapter 7) is doubled from $60 to $120 per case, reflecting inflation since 1994 and ensuring the system remains functional.
  • Filing fees for individual Chapter 7 bankruptcies are not increased, and the ability for low-income individuals to waive fees remains protected.
  • Terms for temporary bankruptcy judges are extended from 5 to 10 years to maintain court capacity and efficiently manage increasing consumer and business caseloads.
What is the specific legal status?

The current status is Passed Senate.

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 Sen. Coons, Christopher A. [D-DE].

What is the latest detailed status?

The latest detailed status is: Passed Senate with an amendment by Unanimous Consent. (text: CR S5475-5476)

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

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