Bills · S 3424
BECAME LAW· 119TH CONGRESS
Senate BillS 3424User charges and feesFinancial services and investments
Bankruptcy Administration Improvement Act of 2025
INTRO DEC 10· LAST ACTION FEB 6
PASSAGE CHANCES
BECAME LAW
READING
8MIN
COSPONSORS
3BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
LEGISLATIVE PROGRESS
STEP 8 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it impacts the efficiency and fairness of the bankruptcy system, which helps individuals and businesses get a fresh financial start. If the current low compensation for Chapter 7 trustees isn't addressed, it could make it harder to find qualified people willing to take on these complex, vital roles, potentially slowing down bankruptcy proceedings. This bill aims to ensure these trustees are compensated appropriately, which could help maintain the quality and speed of service.
Furthermore, extending the terms of temporary bankruptcy judges helps prevent backlogs in courts and ensures there are enough judges to handle a fluctuating number of cases. By adjusting how fees are collected and distributed, the bill aims to keep the bankruptcy system self-funded, meaning it won't be a burden on general taxpayers. If this bill doesn't pass, the compensation for trustees would remain stagnant, potentially discouraging participation, and the terms of temporary judges would expire sooner, potentially leading to staffing shortages in bankruptcy courts.
KEY PROVISIONS
4AI-extractedPROVISION 01
Increases the standard compensation for Chapter 7 bankruptcy trustees from $60 to $120 per case.
This aims to provide fair pay for the essential work of trustees, whose compensation has not increased since 1994.
PROVISION 02
Extends the term of certain temporary bankruptcy judge offices from 5 years to 10 years.
This ensures continued judicial capacity to handle the existing and anticipated caseloads in bankruptcy courts.
PROVISION 03
Modifies how fees collected from bankruptcy cases are distributed among various government funds, including the United States Trustee System Fund.
These adjustments are designed to ensure the bankruptcy system remains financially self-supporting without taxpayer funds.
PROVISION 04
Changes the calculation and duration for deposits of certain quarterly fees paid by Chapter 11 debtors, including extending the deposit period for these fees to the US Trustee System Fund through fiscal year 2031.
This provision helps provide stable and adequate funding for the administration of bankruptcy cases over a longer period.
SPONSORSHIP
1 + 3
D· Delaware
YRS IN OFFICE
15
BILLS LED
64
COSPONSOR BREAKDOWNBIPARTISAN · 66%
DEM 1 REP 2 IND 0
ACTION TIMELINE
15 EVENTSFEB 6
Signed by President.
FEB 6
Became Public Law No: 119-76.
FEB 3
Presented to President.
JAN 12
Mr. Cline moved to suspend the rules and pass the bill.
BILL INFO
TypeSenate Bill
NumberS 3424
Congress119th
StatusBecame Law
IntroducedDec 10, 2025
Last actionFeb 6, 2026
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BECAME LAW· 119TH CONGRESS · SENATE · INTRODUCED DEC 10, 2025
Senate BillS 3424User charges and feesFinancial services and investments
Bankruptcy Administration Improvement Act of 2025
INTRODUCED DEC 10, 2025· LAST ACTION FEB 6, 2026
PASSAGE CHANCES
BECAME LAW
READING
8 min
COSPONSORS
3
COMPLEXITY
Moderate
