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S 3424 Became law

Raises the compensation paid to chapter 7 bankruptcy trustees from $60 to $120 per case and adjusts how bankruptcy filing and quarterly fees are divided among federal funds.

Official title: Bankruptcy Administration Improvement Act of 2025

Outcome Public Law 119-76
Timeline each lane is a chamber; dates pull from congress.gov actions
House
Received 11-DEC-2025
Passed 12-JAN-2026
Senate
Introduced 10-DEC-2025
Passed 11-DEC-2025
President
Presented 03-FEB-2026
Signed 06-FEB-2026
Became law 06-FEB-2026
Key points
  • Increases the base trustee payment under bankruptcy law section 330(b)(1) from $45 to $105, bringing total per-case trustee compensation to $120 with the existing $15 portion.
  • Sets how the remainder of fees collected under section 1930(a)(1)(A) is split among a Treasury special fund, a Deficit Reduction Act fund, and the United States Trustee System Fund.
  • Changes quarterly fee rates in chapter 11 cases, extends the fee deposit period through fiscal year 2031, and sends $5,400,000 a year from certain fees to the general fund of the Treasury.
  • Extends from 5 years to 10 years the terms of certain temporary bankruptcy judgeships created under the 2020 and 2017 bankruptcy judgeship acts.
  • Takes effect on the first day of the calendar quarter after enactment, with the trustee pay changes applying to certain chapter 7 cases commenced on or after the next October 1.
AI-generated from the Public Law text of 07-FEB-2026 · verify · report an error
Official CRS summary

Current. The Congressional Research Service's summary covers the bill's latest wording (Public Law, 06-FEB-2026).

CRS is the Library of Congress's nonpartisan research office. Read it on congress.gov
Committee referrals (0)

No committee referrals on file.

Policy area

Finance and Financial Sector

Sponsor Christopher A. Coons (D-DE) Cosponsors · 3
■ 2 R■ 1 D
1 Democrat