H.R.3867 - Bankruptcy Administration Improvement Act of 2025 (119th Congress)
Summary
H.R. 3867, the Bankruptcy Administration Improvement Act of 2025, aims to amend titles 11 and 28 of the United States Code. The bill focuses on modifying compensation for trustees in Chapter 7 bankruptcy cases and extending the terms of temporary bankruptcy judges. It seeks to ensure the bankruptcy system remains self-supporting without burdening taxpayers.
Expected Effects
The bill's passage would likely lead to increased compensation for Chapter 7 bankruptcy trustees, potentially improving the administration of bankruptcy cases. It would also extend the tenure of certain temporary bankruptcy judgeships, providing stability to the court system. Fee adjustments are intended to maintain the self-funded nature of the bankruptcy system.
Potential Benefits
- Increased compensation for Chapter 7 trustees may attract more qualified individuals to serve in these roles.
- Extension of bankruptcy judgeships provides continuity and reduces potential backlogs in the court system.
- The bill aims to maintain a self-funded bankruptcy system, reducing the burden on taxpayers.
- Adjustments to fees could ensure the long-term financial stability of the bankruptcy system.
- The bill explicitly states that it will not alter filing fees for indigent individuals.
Potential Disadvantages
- Increased fees for some parties involved in bankruptcy cases could create a financial burden.
- The shift in fee allocation might disproportionately affect certain stakeholders.
- There is a risk that increased costs could be passed on to consumers or businesses.
- The complexity of the fee adjustments could lead to confusion and administrative challenges.
- The bill's reliance on fees to fund the system could make it vulnerable to economic downturns affecting bankruptcy filings.
Constitutional Alignment
The bill appears to align with the Constitution, specifically Article I, Section 8, Clause 4, which grants Congress the power to establish uniform laws on the subject of bankruptcies throughout the United States. The bill does not appear to infringe on any individual rights protected by the Bill of Rights. The adjustments to the bankruptcy system are within the purview of Congress's legislative authority.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).