Summary#
This bill changes how some bankruptcy system money is paid and how long certain temporary bankruptcy judges serve. It raises the compensation paid to trustees who handle chapter 7 cases, changes how fees collected under section 1930 are divided, adjusts some quarterly fee rules for larger cases, and extends certain temporary bankruptcy judgeship terms from 5 years to 10 years. The bill says it does not change the chapter 7 filing fee and does not stop courts from waiving filing fees for people who cannot pay.
What it means for you#
- If you are involved in a chapter 7 case (as a debtor, creditor, or trustee), trustees will get higher pay per case starting for cases begun on or after the effective date.
- Filing fees for chapter 7 remain the same, and courts can still waive fees for people who cannot pay.
- Owners or managers of chapter 11, 12, or 13 cases that convert to chapter 7 may be affected by the trustee pay change after the effective date.
- Certain ongoing chapter 11 cases and quarterly fees tied to disbursements may follow the new quarterly fee rules once those rules take effect.
- Some temporary bankruptcy judgeships will remain in place longer because their terms are extended to 10 years.
Expenses#
The bill lists specific fee allocations and changes:
- The bill states trustee compensation will increase to $120 per chapter 7 case (this figure appears in the bill text).
- It amends section 330 to change one statutory amount from $45 to $105 and strikes another subsection.
- After paying trustees from fees collected under 28 U.S.C. 1930(a)(1)(A), the remainder is to be split: $63.51 to the special fund under 1931, $25.00 to the special fund created by the Deficit Reduction Act note, and $51.49 to the United States Trustee System Fund.
- It changes the United States Trustee System Fund share to 28.33 percent of fees collected under 1930(a)(1)(B).
- It raises a fee factor in the quarterly fee schedule from 0.8 to 1.1 and extends a 5-year reference to 10 years.
- For fiscal years 2026 through 2031, $5,400,000 of fees collected under 1930(a)(6) each year will be deposited into the general fund.
No publicly available information about total budgetary cost, net effect on appropriations, or any formal estimate (for example from the Congressional Budget Office) appears in the provided text.
Proponents' View#
According to the bill text, supporters say chapter 7 trustees are important for running many bankruptcy cases and returning assets to creditors. The bill says trustee pay has not kept up with inflation since 1994 and that higher trustee compensation is overdue. Supporters also say the bill keeps the bankruptcy system self-funded, adjusts fee allocations to support the United States Trustee System Fund, and preserves needed bankruptcy judgeships.
Opponents' View#
No publicly available information.