The Bankruptcy Administration Improvement Act of 2025 addresses compensation and funding for the federal bankruptcy system. The bill doubles Chapter 7 bankruptcy trustees' compensation from $60 to $120 per case for the first time since 1994, acknowledging that inflation would value the original $60 payment at over $125 in today's dollars. To fund this increase and support the bankruptcy court system, the bill adjusts various bankruptcy-related fees, including raising quarterly fees for Chapter 11 cases and redirecting fee collections to the United States Trustee System Fund through fiscal year 2031. Additionally, the bill extends temporary bankruptcy judge positions from 5-year to 10-year terms to help handle growing bankruptcy caseloads. All changes take effect on October 1 following the bill's enactment, and the bill explicitly preserves the ability of courts to waive filing fees for low-income individuals.
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