Witnesses urge Congress to raise Chapter 7 trustee pay, extend temporary bankruptcy judgeships

Judges and practitioners told the House Judiciary subcommittee that compensation for Chapter 7 trustees and the number of bankruptcy judges are administrative issues Congress should address to preserve access to the bankruptcy system.

Judge Paul Black testified that the no-asset fee for chapter 7 trustees has not meaningfully increased since 1994 (he noted a rise from $45 to $60 in 1994) and that trustees perform significant review and oversight tasks even in ‘‘no asset’’ cases. Black and other witnesses described that the current $60 fee discourages younger practitioners from serving on trustee panels and that experience and oversight responsibilities have increased, especially after enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Black discussed H.R. 3867, the Bankruptcy Administration Improvement Act of 2025 (cited in his testimony), which would raise the no-asset fee and fund it in part by modestly increasing certain chapter 11 fees; the bill also would extend temporary bankruptcy judgeships around the country. He testified the bill would raise the no-asset payment to $120 and extend temporary judgeships whose terms are expiring in 2026 in multiple districts.

Judge Michelle Harner and other witnesses emphasized that temporary judgeships preserve flexibility for district workloads. Witnesses from multiple districts noted that some judicial districts face imminent expirations of temporary seats and that term expirations could reduce a district’s bench capacity at a time when filings are rising in several districts.

Committee members asked for follow-up on the bill’s funding mechanics and on recruitment trends for trustees. No formal action was taken at the hearing; witnesses urged Congress to move quickly to authorize reasonable pay increases and to preserve bench capacity to prevent delays in case administration.