S. 3424 · Where this bill is now
Became law
Public Law 119-76, Feb 6, 2026
What this bill does
In plain words · AI-written from the official summaryUpdates how bankruptcy cases are run
This bill makes changes to how bankruptcy cases are handled and paid for. It increases the money that goes to trustees who oversee Chapter 7 cases (where people or businesses sell off assets to pay debts) and Chapter 11 cases (where businesses reorganize and try to stay open). It also extends certain fees for five more years and keeps temporary bankruptcy judges in place for another five years.
How it affects you
If you're going through bankruptcy, you might notice some changes in how your case is managed, though the summary doesn't spell out specific effects on individual filers. Bankruptcy trustees and judges would see adjustments to how they're funded and how long they serve. Most other people won't feel a direct impact from this administrative change.
Read the official summary (Public Law, Feb 6, 2026)
Bankruptcy Administration Improvement Act of 2025
This act makes several changes to the administration of bankruptcy cases, particularly by increasing amounts received by certain trustees, extending the sunset date of various fees, and extending the term of specified bankruptcy judgeships.
(Sec. 3) The act increases the amounts paid out of fees to the trustee in Chapter 7 (liquidation) cases.
(Sec. 4) The act extends for an additional five years the fees paid quarterly to the U.S. trustee in Chapter 11 (reorganization) cases. The act also increases the fee percentage for cases with large disbursements, subject to limitations.
(Sec. 5) Finally, temporary bankruptcy judgeships in various districts are extended for an additional five years.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 3424
AN ACT
Bankruptcy Administration Improvement Act of 2025
Sponsor: Sen. Christopher A. Coons (D-DE) · Introduced Dec 10, 2025 · Finance and Financial Sector · 3 versions of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 6, 2026: “Became Public Law No: 119-76.”
Sections
The wording of this bill hasn’t changed across its 3 official versions.