Bankruptcy Administration Improvement Act of 2025

The Bankruptcy Administration Improvement Act of 2025 makes changes to how bankruptcy cases are administered and funded. The law increases the fees that trustees collect in Chapter 7 bankruptcy cases, which are liquidation cases where a debtor's assets are sold to pay creditors. These fee increases affect individuals and businesses going through liquidation bankruptcy.

The law also extends fees related to Chapter 11 bankruptcy cases, which involve business reorganization and restructuring. Specifically, it extends for five more years the quarterly fees paid to the U.S. trustee in these cases. Additionally, the law increases the fee percentage for cases involving large disbursements, though these increases are subject to certain limitations. These changes affect businesses attempting to reorganize their operations while in bankruptcy.