New Chapter 7 Trustee Payments Set to Begin

Bankruptcy courts will begin processing an additional $60 per case payment to eligible chapter 7 bankruptcy trustees for applicable cases filed or converted in fiscal year 2021. Applicable cases are chapter 7 cases filed on or after Jan. 12, 2021, through Sept. 30, 2021, or chapter 11, 12, or 13 cases filed on or after Jan. 12, 2021, that are subsequently converted to chapter 7, on or before Sept. 30, 2021. 

To receive the additional payment, eligible chapter 7 trustees must certify they have rendered services pursuant to the regulations via the filing of a “Trustee Services Rendered Pursuant to 330(e)” event in an individual bankruptcy court’s Case Management/Electronic Case Files (CM/ECF) system. Trustees should allow time for their local bankruptcy court clerk’s office to process payments before inquiring about payment status.

In accordance with the Bankruptcy Administration Improvement Act of 2020, chapter 7 trustees are eligible to receive additional payment if they render services in cases filed:

• under chapter 7 on or after Jan. 12, 2021, to the end of fiscal year 2026;
• or originally filed under chapter 11, 12, or 13, on or after Jan. 12, 2021, and subsequently converted to chapter 7 on or before the end of fiscal year 2026.

Subsequent annual payments will be issued after the end of each applicable fiscal year.  Amounts available for payment are determined annually based on the available balance in the United States Trustee System Fund and the case count of new chapter 7 filings and cases converted to chapter 7 during that fiscal year.

Visit the Bankruptcy Administration Improvement Act Chapter 7 Trustee Payments page for additional information about the payment process and eligibility requirements.