H.R. 9154

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9154 Introduced in House (IH)]

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118th CONGRESS
2d Session
H. R. 9154

To amend titles 11 and 28 of the United States Code to modify the 
compensation payable to trustees serving in cases under chapter 7 of 
such title; to extend the term of certain temporary offices of 
bankruptcy judge, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

July 25, 2024

Mr. Ivey (for himself, Mr. Cline, Mr. Gooden of Texas, and Mr. Johnson 
of Georgia) introduced the following bill; which was referred to the 
Committee on the Judiciary

_______________________________________________________________________

A BILL

To amend titles 11 and 28 of the United States Code to modify the 
compensation payable to trustees serving in cases under chapter 7 of 
such title; to extend the term of certain temporary offices of 
bankruptcy judge, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Bankruptcy Administration 
Improvement Act of 2024''.

SEC. 2. FINDINGS.

The Congress finds the following:
(1) Congress has amended the laws governing bankruptcy fees 
as necessary to ensure that the bankruptcy system remains self-
supporting, while also fairly allocating the costs of the 
system among those who use the system.
(2) Because of the importance for the bankruptcy system to 
be self-funded, at no cost to taxpayers, Congress has closely 
monitored the funding needs of the bankruptcy system, including 
by requiring periodic reporting by the Attorney General 
regarding the United States Trustee System Fund.
(3) Because the system governing bankruptcies of various 
types is interconnected, Congress has established fees, 
including filing fees, quarterly fees in chapter 11 cases, and 
other fees, that together fund the courts, judges, United 
States trustees, and trustees serving in bankruptcy cases under 
chapter 7 of title 11 of the United States Code.
(4) Trustees serving in bankruptcy cases under chapter 7 of 
title 11 of the United States Code are vital to the functioning 
of the bankruptcy system, as they provide services at the front 
lines of the bankruptcy process, administering thousands of 
cases.
(5) Chapter 7 bankruptcy trustees provide valuable returns 
of assets to government creditors including the Internal 
Revenue Service, Department of Agriculture, Small Business 
Administration, and other Federal, State, and municipal 
governments.
(6) Due to the work of the chapter 7 bankruptcy trustees, 
millions of dollars are also disbursed annually to private 
creditors of all types including medical providers, unsecured 
creditors, small businesses, and micro-enterprises such as 
domestic support providers.
(7) Despite the essential role of chapter 7 bankruptcy 
trustees, since 1994 the amount of compensation paid to these 
trustees has not been increased. As in 1994, bankruptcy 
trustees receive only $60 per case (composed of $45 from 
subsection 330(b)(1), and $15 from subsection 330(b)(2), of 
title 11 of the United States Code) in nearly ninety percent of 
chapter 7 cases, and they receive no compensation at all for 
cases in which the filing fee is waived by the Bankruptcy 
Court.
(8) Since 1994 there have been significant increases in 
salaries, attorney fees, budget appropriations, filing fees, 
and court-related fees associated with chapter 7 bankruptcies. 
In contrast, the $60 paid to chapter 7 trustees has remained 
the same and has not even been increased for inflation. In 
2021, Congress attempted to implement a mechanism that would 
give chapter 7 trustees a raise, but the trustees only received 
increased compensation for one fiscal year. Based on CPI 
estimates, the $60 of in 1994 would be the equivalent of over 
$125 today.
(9) This Act and the amendments made by this Act--
(A) increase the compensation of chapter 7 
bankruptcy trustees to the level that is appropriate, 
overdue, and proportionate with the level that was 
intended in 1994, by increasing their total 
compensation to $120 per case and ensuring that the 
amount is indexed for inflation;
(B) ensure adequate funding of the United States 
trustee system; and
(C) support the preservation of existing bankruptcy 
judgeships that are urgently needed to handle existing 
and anticipated increases in business and consumer 
caseloads.
(10) This Act will not alter the chapter 7 filing fee and 
will not modify, impair, or supersede the current authority of 
the district courts of the United States, or of bankruptcy 
courts, to waive the payment of filing fees by indigent 
individuals.

SEC. 3. TRUSTEE COMPENSATION.

(a) Compensation of Officers.--Section 330 of title 11, United 
States Code, is amended--
(1) in subsection (b)(1) by striking ``$45'' and inserting 
``$105'', and
(2) by striking subsection (e).
(b) Remainder of Fees.--Notwithstanding any other provision of law, 
the remainder of fees collected under section 1930(a)(1)(A) of title 
28, United States Code, after compensating trustees under section 
330(b)(1) of title 11, United States Code, shall be deposited as 
follows:
(1) $63.51 in the Special Fund established under section 
1931 of title 28, United States Code,
(2) $25 in the Special Fund established in accordance with 
section 10101(b) of Public Law 109-171, and
(3) $51.49 in the United States Trustee Fund established 
under Section 589a of title 28, United States Code.
(c) United States Trustee System Fund.--Section 589a(f)(1) of title 
28, United States Code, is amended--
(1) in subparagraph (D) by striking ``Fourth'' and 
inserting ``Second'',
(2) by striking subparagraphs (B) and (C), and
(3) by redesignating subparagraph (D) as subparagraph (B).

SEC. 4. BANKRUPTCY FEES.

(a) Section 1930(a)(6)(B) of title 28 of the United States Code, is 
amended--
(1) in clause (i) by striking ``5-year'' and inserting 
``10-year'', and
(2) in clause (ii) by striking ``0.8'' and inserting 
``1.1''.
(b) Section 589a(f) of title 28 of the United States Code is 
amended by striking ``2026'' each place it appears and inserting 
``2031''.

SEC. 5. EXTENSION OF TERM OF CERTAIN TEMPORARY OFFICES OF BANKRUPTCY 
JUDGE.

(a) Section 4 of the Bankruptcy Administration Improvement Act of 
2020 (Public Law 116-325) is amended--
(1) in subsection (a)(2)--
(A) in subparagraph (A)(i) by striking ``5 years'' 
and inserting ``10 years'', and
(B) in subparagraph (B)(i) by striking ``5 years'' 
and inserting ``10 years'',
(2) in subsection (b)(2)--
(A) in subparagraph (A)(i) by striking ``5 years'' 
and inserting ``10 years'',
(B) in subparagraph (B)(i) by striking ``5 years'' 
and inserting ``10 years'',
(C) in subparagraph (C)(i) by striking ``5 years'' 
and inserting ``10 years'',
(D) in subparagraph (D)(i) by striking ``5 years'' 
and inserting ``10 years'',
(E) in subparagraph (E)(i) by striking ``5 years'' 
and inserting ``10 years'', and
(F) in subparagraph (F)(i) by striking ``5 years'' 
and inserting ``10 years'',
(3) in subsection (c)(2)--
(A) in subparagraph (A)(i) by striking ``5 years'' 
and inserting ``10 years'', and
(B) in subparagraph (B)(i) by striking ``5 years'' 
and inserting ``10 years'',
(4) in subsection (d)(2)--
(A) in subparagraph (A)(i) by striking ``5 years'' 
and inserting ``10 years'', and
(B) in subparagraph (B)(i) by striking ``5 years'' 
and inserting ``10 years'',
(5) in subsection (e)(2)(A) by striking ``5 years'' and 
inserting ``10 years'', and
(6) in subsection (f)(2)(A) by striking ``5 years'' and 
inserting ``10 years''.
(b) Section 1003(b)(2)(A) of the Bankruptcy Judgeship Act of 2017 
(Pub. L. No. 115-72) is amended by striking ``5 years'' and inserting 
``10 years''.

SEC. 6. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

(a) In General.--Except as provided in paragraph (2), the 
amendments made by this Act shall take effect on October 1 that first 
occurs after the date of the enactment of this Act.
(b) Exceptions.--
(1) Compensation of officers.--The amendments made by 
section 3 shall apply to any case under title 11 of the United 
States Code commenced on or after October 1 that first occurs 
after the date of the enactment of this Act--
(A) under chapter 7, or
(B) under chapter 11, 12, or 13 and converted to a 
case chapter 7.
(2) Bankruptcy fees.--The amendments made by section 4 
shall apply to--
(A) any case pending under chapter 11 of title 11 
of the United States Code on or after October 1 that 
first occurs after October 1 that first occurs after 
the date of the enactment of this Act, and
(B) quarterly fees payable under section 1930(a)(6) 
of title 28 of the United States Code for disbursements 
made in any calendar quarter that begins on or after 
October 1 that first occurs after the date of the 
enactment of this Act.
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