[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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