Bill would double bankruptcy trustee pay and extend judge terms

What does this do?

This bill raises the per-case payment for Chapter 7 bankruptcy trustees from $60, unchanged since 1994, to $120. It also adjusts bankruptcy-related fee collection and distribution across government funds to cover this raise and court funding without taxpayer money, and extends certain temporary bankruptcy judge positions from 5-year to 10-year terms.

Who does it affect?

Chapter 7 trustees, who would receive higher pay; and federal bankruptcy courts, which rely on the judgeships and funding structures. Businesses and individuals filing bankruptcy are affected through fee adjustments, though personal filing fees stay the same.

Why does it matter?

The changes aim to keep trustee pay and court funding sustainable amid rising costs, and to prevent a loss of judges needed to manage current and expected bankruptcy caseloads.

What does it cost, and who pays?

• Trustee pay rises $60 to $120 per case
• Funded via bankruptcy fee redistribution
• Personal filing fees unchanged