S 3424 · Signed into Law · 02-06-26
Bankruptcy Administration Improvement Act of 2025
What does the Bankruptcy Administration Improvement Act of 2025 do?
S 3424 is a Senate bill sponsored by Sen. Christopher A. Coons (D-DE). Raises the pay of Chapter 7 bankruptcy trustees, who administer most consumer bankruptcies, from $60 to $120 per case, and pays for it by raising bankruptcy fees. It also extends the terms of several temporary bankruptcy judgeships from 5 to 10 years. Doubles per-case Chapter 7 trustee compensation to $120, funded by higher bankruptcy fees, and extends temporary bankruptcy judgeships to 10-year terms.
Did S 3424 pass? Where it stands
As of July 17, 2026, S 3424 has been signed into law on February 6, 2026.
Status: Signed into Law
Latest vote: House Passed by voice vote on January 12, 2026
Outlook: Enacted
Enacted: Signed into law on February 6, 2026
Key provisions
- Trustee Compensation
- Per-case Chapter 7 trustee pay raised from $60 to $120
- Base statutory payment raised from $45 to $105 (plus the existing $15)
- Applies to cases filed on or after the first October 1 after enactment
- Bankruptcy Fees and Fund Allocation
- Quarterly-fee lookback extended from 5 years to 10 years
- Upper quarterly-fee rate raised from 0.8% to 0.9% of disbursements
- $5.4M of fees redirected to the general Treasury each year, FY2026-2031
- Temporary Bankruptcy Judgeships
- Terms of specified temporary judgeships extended from 5 to 10 years
- Covers judgeships under the 2020 and 2017 bankruptcy judgeship acts
Last updated June 25, 2026