S. 1659: Bankruptcy Administration Improvement Act of 2025 (119th Congress) Bill Summary

This bill, known as the Bankruptcy Administration Improvement Act of 2025, seeks to amend existing laws related to bankruptcy in several key ways to enhance the efficiency and compensation associated with the bankruptcy system in the United States.

Key Provisions of the Bill

1. Trustee Compensation Increase

The bill proposes to increase the compensation for Chapter 7 bankruptcy trustees from $60 to $120 per case. This adjustment is intended to provide fair compensation that reflects the current economic conditions, as the original amount has not been updated since 1994. The increase aims to better support the essential services provided by trustees, who play a critical role in administering bankruptcy cases and recovering assets for creditors.

2. Fees to Ensure System Funding

To maintain the financial sustainability of the United States Trustee System, the bill suggests raising certain fees associated with bankruptcy cases. This also includes provisions that would affect fees in districts that do not belong to a United States trustee region. The overall goal is to ensure the bankruptcy system remains self-funding without burdening taxpayers.

3. Lengthening Bankruptcy Judges' Terms

Another significant change involves extending the terms of temporary bankruptcy judges. The bill proposes extending these terms from five years to ten years. This change aims to accommodate the increasing caseload in both business and consumer bankruptcy cases, ensuring that the judiciary can effectively manage these cases.

4. Modifications to Bankruptcy Fees

The bill also includes changes to the existing bankruptcy fees outlined in relevant laws. For example, it proposes changing the structure of quarterly fees paid under certain bankruptcy provisions to better adapt to current conditions and ensure ongoing funding of the system.

5. Effective Date of Amendments

The amendments outlined in this bill are set to take effect on October 1 following its passage, ensuring a timely implementation of the proposed changes.