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, if there are funds available.
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.
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No Funds Available for FY 2022 Cases
The Department of Justice (DOJ) has announced that there are insufficient funds available for transfer under 11 U.S.C. § 589a(f)(1) to pay chapter 7 trustee compensation under 11 U.S.C. § 330(e) in applicable FY 2022 cases. In accordance with 11 U.S.C. § 330(e)(4) and the regulations (pdf), the amount for payment in applicable FY 2022 cases is therefore $0.
Applicable FY 2022 cases are chapter 7 cases filed on or after Oct. 1, 2021, through Sept. 30, 2022, or chapter 11, 12, or 13 cases filed on or after Jan. 12, 2021, that are subsequently converted to chapter 7, on or after Oct. 1, 2021, through Sept. 30, 2022. Trustees should not contact their local bankruptcy court clerk’s office to request payments for any such cases.
Payments 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 issued allotments to bankruptcy courts in June 2022 for payments to eligible trustees for applicable FY 2021 cases. As of Dec. 1, 2022, nearly 98 percent of the $13 million transferred for FY 2021 cases has been certified for payment to trustees. Please contact your local bankruptcy court clerk’s office if you have any questions about the status of payments for applicable FY 2021 cases.