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Bankruptcy Administration Improvement Act Chapter 7 Trustee Payments

The Bankruptcy Administration Improvement Act (BAIA) establishes an additional payment for eligible chapter 7 trustees paid annually.

The legislation (Pub. L. No. 116-325), enacted on Jan. 12, 2021, adds subsection (e) to 11 U.S.C. § 330 and establishes a new payment for eligible chapter 7 trustees funded by excess collections in the U.S. Trustee System Fund.

Eligible chapter 7 trustees may receive an additional payment, up to $60 for each applicable case, if they rendered services in cases:  

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

The trustee must certify they have rendered services via the filing of a "Trustee Services Rendered Pursuant to 330(e)" event in an individual bankruptcy court’s Case Management Electronic Case Filing (CM/ECF) system.

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 U.S. Trustee System Fund and the case count of new chapter 7 filings and cases converted to chapter 7 during that fiscal year.

Sign up to receive notification annually when payments begin for future fiscal years.

Payments Begin for Applicable FY 2021 Cases

Eligible chapter 7 bankruptcy trustees serving in applicable cases filed or converted in FY 2021 will receive $60 per case if they have rendered services in accordance with the regulations. 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. 

The Administrative Office of the U.S. Courts has issued allotments to bankruptcy courts who will begin processing payments to trustees who have filed the appropriate certification. Please allow time for your local bankruptcy court clerk’s office to process payments before contacting them with questions or for an update on the status of payments.