Bankruptcy filers pay more so trustees can earn fair wages after 31 years.

What it does

This bill raises Chapter 7 bankruptcy trustee compensation from $60 per case (unchanged since 1994) to $120 per case, funded by increasing certain bankruptcy filing and quarterly fees. It also extends temporary bankruptcy judgeships by five additional years and redirects fee revenue to support the U.S. Trustee System. The bill is designed to keep the bankruptcy system self-funded without taxpayer cost while ensuring trustees can afford to administer cases fairly.

Why we flagged it

The bill's core mechanism is a fee-funded compensation increase for Chapter 7 trustees and extension of temporary judgeships. It is framed as a self-supporting system adjustment, not a taxpayer-funded expansion, and operates within existing bankruptcy fee authority.

What the text implies

• Bankruptcy filers—disproportionately lower-income individuals—will pay higher fees; fee waivers for indigent filers remain available but may be underutilized if applicants are unaware or discouraged by the process.
• Chapter 11 quarterly fees increase from 0.8% to 1.1% of disbursements, raising costs for business bankruptcies and potentially affecting small-business reorganization feasibility.
• Extension of temporary judgeships to 10 years (from 5) defers the need for permanent judicial appointments, potentially reducing congressional pressure to fill vacancies or create new permanent positions.
• Fee revenue redirected to U.S. Trustee System Fund may improve oversight capacity, but the $5.4M annual deposit to the general Treasury (FY 2026–2031) represents a partial offset to the system's self-funding model.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Bankruptcy filers—typically individuals in financial distress—face higher filing fees to fund trustee raises and judicial resources, which may deter some from seeking bankruptcy protection. However, better-compensated trustees may improve case administration and asset recovery for creditors (including government agencies and small businesses), and extended judgeships reduce case backlogs. The net effect depends on whether fee increases outweigh improved system efficiency.

Who stands to gain

• Chapter 7 bankruptcy trustees (compensation increase)
• U.S. Trustee System (increased funding)
• Federal judiciary (extended temporary judgeships)

Named in the bill

Chapter 7 bankruptcy trustees, U.S. Trustee System, Bankruptcy courts, Internal Revenue Service, Department of Agriculture, Small Business Administration, Section 330 (title 11, U.S.C.), Section 1930 (title 28, U.S.C.), Section 589a (title 28, U.S.C.), Bankruptcy Administration Improvement Act of 2020, Bankruptcy Judgeship Act of 2017, Deficit Reduction Act of 2005

Where it stands

12 cosponsors: 6 Democrats, 6 Republicans.

• Jun 10, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jun 10, 2025 — Referred to House Committee on the Judiciary · Congress.gov: “Referred to the House Committee on the Judiciary”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

2 lobbying clients named this bill on 2 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $275,000 in lobbying spend. A filing names 16 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 41% of bills with at least one filing.

Ben Cline, the sponsor, reported $640,776 in PAC receipts in the 2026 cycle.

• Service Employees International Union Ctw-clc — $255,000 on 1 filing
• National Association of Bankruptcy Trustees — $20,000 on 1 filing

Lobbying Disclosure Act filings through Jul 19, 2026. A filing shows who paid to lobby on a bill it names, not what changed.