Bills · S 1659
PASSED SENATE· 119TH CONGRESS
Senate BillS 1659User charges and feesFinancial services and investments
Bankruptcy Administration Improvement Act of 2025
INTRO MAY 7· LAST ACTION AUG 8
READING
8MIN
COSPONSORS
10BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- One chamber only
LEGISLATIVE PROGRESS
STEP 4 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it addresses a long-standing issue of stagnant pay for Chapter 7 bankruptcy trustees, who play a crucial role in managing debt and distributing assets. By increasing their compensation for the first time in decades, it could help attract and retain qualified professionals, potentially leading to more efficient and thorough administration of bankruptcy cases. This means that both creditors (like banks and individuals owed money) and debtors could see quicker and more effective resolution of their cases.
Furthermore, extending the terms of temporary bankruptcy judges ensures that the court system maintains its capacity to handle the volume of bankruptcy filings, preventing backlogs and delays. If this bill doesn't become law, trustee pay will remain at 1994 levels, potentially impacting the quality of service, and some judicial positions may expire, adding strain to the courts. The proposed funding changes maintain the principle that the bankruptcy system pays for itself through fees, rather than relying on general taxpayer funds.
KEY PROVISIONS
5AI-extractedPROVISION 01
Increases the basic compensation for Chapter 7 bankruptcy trustees from $60 to $120 per case.
This provision addresses decades of stagnant pay for essential workers in the bankruptcy system, bringing their compensation closer to modern economic value.
PROVISION 02
Extends the term of certain temporary bankruptcy judge offices from 5 years to 10 years.
This ensures continued judicial capacity to manage the existing and anticipated caseloads in bankruptcy courts, maintaining efficiency.
PROVISION 03
Increases quarterly fees for Chapter 11 bankruptcy cases from 0.8% to 1.1% of disbursements.
These increased fees help fund the system's operations and the increased trustee compensation without impacting individual filers or taxpayers.
PROVISION 04
Revises how collected bankruptcy fees are distributed among the United States Trustee System Fund and other special Treasury funds.
This ensures the financial stability and self-sufficiency of the bankruptcy system by adjusting funding allocations.
PROVISION 05
Explicitly states that it will not alter Chapter 7 filing fees or courts' authority to waive fees for indigent individuals.
This protects access to bankruptcy relief for low-income individuals, ensuring the financial burden doesn't prevent them from seeking help.
SPONSORSHIP
1 + 10
D· Delaware
YRS IN OFFICE
15
BILLS LED
64
COSPONSOR BREAKDOWNBIPARTISAN · 80%
DEM 4 REP 6 IND 0
ACTION TIMELINE
9 EVENTSAUG 8
Message on Senate action sent to the House.
AUG 8
Received in the House.
AUG 8
Held at the desk.
AUG 1
Senate Committee on the Judiciary discharged by Unanimous Consent.
BILL INFO
TypeSenate Bill
NumberS 1659
Congress119th
StatusPassed Senate
IntroducedMay 7, 2025
Last actionAug 8, 2025
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PASSED SENATE· 119TH CONGRESS · JUDICIARY COMMITTEE · INTRODUCED MAY 7, 2025
Senate BillS 1659User charges and feesFinancial services and investments
Bankruptcy Administration Improvement Act of 2025
INTRODUCED MAY 7, 2025· LAST ACTION AUG 8, 2025
PASSAGE CHANCES
—%
READING
8 min
COSPONSORS
10
COMPLEXITY
Moderate
