Bankruptcy Administration Improvement Act of 2025

The Bankruptcy Administration Improvement Act of 2025 has passed the Senate and is currently being debated in the House. This bill proposes several administrative changes to how bankruptcy cases are managed and funded in the federal court system.

The bill would increase the fees that bankruptcy trustees collect in Chapter 7 cases, which are liquidation cases where a debtor's assets are sold to pay creditors. It would also extend fees paid quarterly to the U.S. trustee in Chapter 11 cases, which involve business reorganizations, for an additional five years. For Chapter 11 cases involving large disbursements, the bill would increase the fee percentage, though it includes limitations on how much these fees can rise.

Additionally, the bill would extend temporary bankruptcy judgeships in various federal districts for another five years. These changes would affect how bankruptcy cases are administered and funded, potentially impacting the costs associated with filing for bankruptcy and the resources available to handle these cases in federal courts. Citizens considering bankruptcy or involved in bankruptcy proceedings could see changes in the fees and timelines associated with their cases.