This bill increases compensation for Chapter 7 bankruptcy trustees for the first time since 1994, raising their standard pay from $60 per case to $120 per case and indexing the amount for inflation going forward. The trustees, who administer thousands of individual bankruptcies and recover millions in assets for government and private creditors, have seen their compensation eroded by decades of inflation, with the 1994 rate equivalent to over $125 in 2021 dollars. The bill also extends temporary bankruptcy judge positions from 5 to 10 years and adjusts bankruptcy filing fees and fee allocation formulas to help fund the changes while maintaining the self-supporting nature of the bankruptcy system at no cost to taxpayers. The changes take effect October 1 following the bill's enactment and apply to bankruptcy cases filed after that date.
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