Summary
Raises the payment for chapter 7 bankruptcy trustees, changes some bankruptcy fees, and makes the jobs of some temporary bankruptcy judges last longer.
What problem does this solve?
People who manage bankruptcy cases, called trustees, have not received a pay raise since 1994, even though their work is very important. This law increases their pay to a fair level and adjusts fees to make sure the bankruptcy system can support itself without using taxpayer money.
Who does this affect?
- Chapter 7 Bankruptcy Trustees
- Temporary Bankruptcy Judges
- Businesses filing for Chapter 11 bankruptcy
What does this law do?
Increases pay for chapter 7 trustees
Raises the base payment for trustees handling chapter 7 bankruptcy cases from $60 to $120 per case. This is the first increase since 1994.
Extends terms for temporary bankruptcy judges
Lengthens the job terms for certain temporary bankruptcy judges from 5 years to 10 years, helping courts manage their caseloads.
Changes quarterly fees in chapter 11 cases
Adjusts the formula for calculating quarterly fees that certain businesses in chapter 11 bankruptcy must pay.
Adjusts how bankruptcy fees are distributed
Changes how money from bankruptcy filing fees is divided and deposited into different government funds, including the United States Trustee System Fund.
What is the real world impact?
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Ensures fair pay for bankruptcy trustees
Provides a long-overdue pay raise for chapter 7 bankruptcy trustees, whose compensation has not increased since 1994. This helps ensure that skilled people are willing to do this important job, which helps both the government and private citizens collect money they are owed.
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Keeps experienced judges on the bench
Extends the terms for several temporary bankruptcy judge positions. This is meant to help courts handle the number of bankruptcy cases, but it also keeps specific judges in their roles for longer without creating permanent positions.
When does this start?
Different parts of this law start at different times, with specific rules for trustee pay and bankruptcy fees.
Trustee pay increase
The new, higher pay for trustees applies to all bankruptcy cases started on or after the first October 1st after the law is passed.
Bankruptcy fee changes
The changes to bankruptcy fees apply to all cases that are active on the first day of the next calendar quarter after the law is passed.