Bankruptcy Administration Improvement Act of 2025
Bankruptcy Administration Improvement Act of 2025
Plain Language Summary
# Bankruptcy Administration Improvement Act of 2025 – Summary **What It Does** This law makes administrative changes to how bankruptcy cases are managed in federal courts. Specifically, it increases fees paid to trustees who oversee Chapter 7 bankruptcy cases (where individuals or businesses liquidate assets to pay debts) and extends fees for Chapter 11 cases (where businesses reorganize to continue operating) for another five years. The law also adjusts fee percentages for large cases and extends temporary bankruptcy judgeships in various federal districts for five additional years. **Who It Affects** The changes primarily affect people and businesses filing for bankruptcy, as they may face higher administrative fees.
Bankruptcy trustees, who are responsible for managing cases, will receive increased compensation. Federal bankruptcy courts also benefit from the extended judgeships, helping them handle caseloads more effectively. **Current Status** The bill has been signed into law, meaning it is now in effect. It was sponsored by Senator Christopher Coons (D-DE) and passed through Congress.
CRS Official Summary
Bankruptcy Administration Improvement Act of 2025This bill makes several changes to the administration of bankruptcy cases, particularly by increasing certain fees, extending the sunset date of various fees, and extending the term of specified bankruptcy judgeships.The bill increases the fees paid to the trustee in Chapter 7 (liquidation) cases.The bill extends for an additional five years the fees paid quarterly to the U.S. trustee in Chapter 11 (reorganization) cases. The bill also increases the fee percentage for cases with large disbursements, subject to limitations. Finally, temporary bankruptcy judgeships in various districts are extended for an additional five years.
Latest Action
Became Public Law No: 119-76.