S. 4996 

One Hundred Sixteenth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Friday, 

the third day of January, two thousand and twenty 

An Act 

To ensure funding of the United States trustees, extend temporary bankruptcy 

judgeships, and for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Bankruptcy Administration 

Improvement Act of 2020’’. 

SEC. 2. FINDINGS AND PURPOSE. 

(a) FINDINGS.—Congress finds the following: 

(1) Because of the importance of the goal that the bankruptcy system is self-funded, at no cost to the taxpayer, Congress has closely monitored the funding needs of the bankruptcy 

system, including by requiring periodic reporting by the 

Attorney General regarding the United States Trustee System 

Fund. 

(2) Congress has amended the various bankruptcy fees 

as necessary to ensure that the bankruptcy system remains 

self-supporting, while also fairly allocating the costs of the 

system among those who use the system. 

(3) Because the bankruptcy system is interconnected, the 

result has been a system of fees, including filing fees, quarterly 

fees in chapter 11 cases, and other fees, that together fund 

the courts, judges, United States trustees, and chapter 7 case 

trustees necessary for the bankruptcy system to function. 

(4) This Act and the amendments made by this Act— 

(A) ensure adequate funding of the United States 

trustees, supports the preservation of existing bankruptcy 

judgeships that are urgently needed to handle existing 

and anticipated increases in business and consumer caseloads, and provides long-overdue additional compensation 

for chapter 7 case trustees whose caseloads include chapter 

11 reorganization cases that were converted to chapter 

7 liquidation cases; and 

(B) confirm the longstanding intention of Congress that 

quarterly fee requirements remain consistent across all 

Federal judicial districts. 

(b) PURPOSE.—The purpose of this Act and the amendments 

made by this Act is to further the long-standing goal of Congress 

of ensuring that the bankruptcy system is self-funded, at no cost 

to the taxpayer. 
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SEC. 3. UNITED STATES TRUSTEE SYSTEM FUND; BANKRUPTCY FEES. 

(a) DEPOSITS OF CERTAIN FEES FOR FISCAL YEARS 2021 

THROUGH 2026.—Notwithstanding section 589a(b) of title 28, United 

States Code, for each of fiscal years 2021 through 2026— 

(1) the fees collected under section 1930(a)(6) of such title, 

less the amount specified in subparagraph (2), shall be deposited as specified in subsection (b); and 

(2) $5,400,000 of the fees collected under section 1930(a)(6) 

of such title shall be deposited in the general fund of the 

Treasury. 

(b) UNITED STATES TRUSTEE SYSTEM FUND.—Section 589a of 

title 28, United States Code, is amended by adding at the end 

the following: 

‘‘(f)(1) During each of fiscal years 2021 through 2026 and notwithstanding subsections (b) and (c), the fees collected under section 

1930(a)(6), less the amount specified in paragraph (2), shall be 

deposited as follows, in the following order: 

‘‘(A) First, the amounts specified in the Department of 

Justice appropriations for that fiscal year, shall be deposited 

as discretionary offsetting collections to the ‘‘United States 

Trustee System Fund’’, pursuant to subsection (a), to remain 

available until expended. 

‘‘(B) Second, the amounts determined annually by the 

Director of the Administrative Office of the United States 

Courts that are necessary to reimburse the judiciary for the 

costs of administering payments under section 330(e) of title 

11, shall be deposited as mandatory offsetting collections to 

the ‘United States Trustee System Fund’, and transferred and 

deposited into the special fund established under section 

1931(a), and notwithstanding subsection (a), shall be available 

for expenditure without further appropriation. 

‘‘(C) Third, the amounts determined annually by the 

Director of the Administrative Office of the United States 

Courts that are necessary to pay trustee compensation authorized by section 330(e)(2) of title 11, shall be deposited as mandatory offsetting collections to the ‘United States Trustee System 

Fund’, and transferred and deposited into the Chapter 7 Trustee 

Fund established under section 330(e) of title 11 for payment 

to trustees serving in cases under chapter 7 of title 11 (in 

addition to the amounts paid under section 330(b) of title 11), 

in accordance with that section, and notwithstanding subsection 

(a), shall be available for expenditure without further appropriation. 

‘‘(D) Fourth, any remaining amounts shall be deposited 

as discretionary offsetting collections to the ‘United States 

Trustee System Fund’, to remain available until expended. 

‘‘(2) Notwithstanding subsection (b), for each of fiscal years 

2021 through 2026, $5,400,000 of the fees collected under section 

1930(a)(6) shall be deposited in the general fund of the Treasury.’’. 

(c) COMPENSATION OF OFFICERS.—Section 330 of title 11, United 

States Code, is amended by adding at the end the following: 

‘‘(e)(1) There is established a fund in the Treasury of the 

United States, to be known as the ‘Chapter 7 Trustee Fund’, which 

shall be administered by the Director of the Administrative Office 

of the United States Courts. 
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‘‘(2) Deposits into the Chapter 7 Trustee Fund under section 

589a(f)(1)(C) of title 28 shall be available until expended for the 

purposes described in paragraph (3). 

‘‘(3) For fiscal years 2021 through 2026, the Chapter 7 Trustee 

Fund shall be available to pay the trustee serving in a case that 

is filed under chapter 7 or a case that is converted to a chapter 

7 case in the most recent fiscal year (referred to in this subsection 

as a ‘chapter 7 case’) the amount described in paragraph (4) for 

the chapter 7 case in which the trustee has rendered services 

in that fiscal year. 

‘‘(4) The amount described in this paragraph shall be the lesser 

of— 

‘‘(A) $60; or 

‘‘(B) a pro rata share, for each chapter 7 case, of the 

fees collected under section 1930(a)(6) of title 28 and deposited 

to the United States Trustee System Fund under section 

589a(f)(1) of title 28, less the amounts specified in section 

589a(f)(1)(A) and (B) of title 28. 

‘‘(5) The payment received by a trustee under paragraph (3) 

shall be paid in addition to the amount paid under subsection 

(b). 

‘‘(6) Not later than September 30, 2021, the Director of the 

Administrative Office of the United States Courts shall promulgate 

regulations for the administration of this subsection.’’. 

(d) BANKRUPTCY FEES.—Section 1930(a) of title 28, United 

States Code, is amended— 

(1) by striking paragraph (6)(B) and inserting the following: 

‘‘(B)(i) During the 5-year period beginning on January 

1, 2021, in addition to the filing fee paid to the clerk, 

a quarterly fee shall be paid to the United States trustee, 

for deposit in the Treasury, in each open and reopened 

case under chapter 11 of title 11, other than under subchapter V, for each quarter (including any fraction thereof) 

until the case is closed, converted, or dismissed, whichever 

occurs first. 

‘‘(ii) The fee shall be the greater of— 

‘‘(I) 0.4 percent of disbursements or $250 for each 

quarter in which disbursements total less than 

$1,000,000; and 

‘‘(II) 0.8 percent of disbursements but not more 

than $250,000 for each quarter in which disbursements 

total at least $1,000,000. 

‘‘(iii) The fee shall be payable on the last day of the 

calendar month following the calendar quarter for which 

the fee is owed.’’; and 

(2) in paragraph (7), in the first sentence, by striking 

‘‘may’’ and inserting ‘‘shall’’. 

(e) APPLICABILITY.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall take effect on the 

date of enactment of this Act. 

(2) EXCEPTIONS.— 

(A) COMPENSATION OF OFFICERS.—The amendments 

made by subsection (c) shall apply to any case filed on 

or after the date of enactment of this Act— 

(i) under chapter 7 of title 11, United States Code; 

or 
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(ii)(I) under chapter 11, 12, or 13 of that title; 

and 

(II) converted to a chapter 7 case under that title. 

(B) BANKRUPTCY FEES.—The amendments made by 

subsection (d) shall apply to— 

(i) any case pending under chapter 11 of title 11, 

United States Code, on or after the date of enactment 

of this Act; and 

(ii) quarterly fees payable under section 1930(a)(6) 

of title 28, United States Code, as amended by subsection (d), for disbursements made in any calendar 

quarter that begins on or after the date of enactment 

of this Act. 

SEC. 4. EXTENSION OF TEMPORARY OFFICE OF BANKRUPTCY JUDGES 

IN CERTAIN JUDICIAL DISTRICTS. 

(a) TEMPORARY OFFICE OF BANKRUPTCY JUDGES AUTHORIZED

BY THE BANKRUPTCY JUDGESHIP ACT OF 2017.— 

(1) EXTENSIONS.—The temporary office of bankruptcy 

judges authorized by section 1003(a) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note) for the district of Delaware 

and the eastern district of Michigan are extended until the 

applicable vacancy specified in paragraph (2) in the office of 

a bankruptcy judge for the respective district occurs. 

(2) VACANCIES.— (A) DISTRICT OF DELAWARE.—The 1st and 2d vacancies 

in the office of a bankruptcy judge for the district of Delaware— 

(i) occurring 5 years or more after the date established by section 1003(b)(1) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(B) EASTERN DISTRICT OF MICHIGAN.—The 1st vacancy 

in the office of a bankruptcy judge for the eastern district 

of Michigan— 

(i) occurring 5 years or more after the date established by section 1003(b)(3) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(3) APPLICABILITY OF OTHER PROVISIONS.—Except as provided in paragraphs (1) and (2), all other provisions of section 

1003 of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 

note) remain applicable to the temporary office of bankruptcy 

judges referred to in paragraph (1). 

(b) TEMPORARY OFFICE OF BANKRUPTCY JUDGES AUTHORIZED

BY THE BANKRUPTCY JUDGESHIP ACT OF 2005 AND EXTENDED BY

THE TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2012 

AND THE BANKRUPTCY JUDGESHIP ACT OF 2017.— 

(1) EXTENSIONS.—The temporary office of bankruptcy 

judges authorized for the following districts by section 1223(b) 

of the Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note), 

extended by section 2(a) of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note), and further 
S. 4996—5 

extended by section 1002(a) of the Bankruptcy Judgeship Act 

of 2017 (28 U.S.C. 152 note) are extended until the applicable 

vacancy specified in paragraph (2) in the office of a bankruptcy 

judge for the respective district occurs: 

(A) The district of Delaware. 

(B) The southern district of Florida. 

(C) The district of Maryland. 

(D) The eastern district of Michigan. 

(E) The district of Nevada. 

(F) The eastern district of North Carolina. 

(G) The district of Puerto Rico. 

(H) The eastern district of Virginia. 

(2) VACANCIES.— 

(A) SINGLE VACANCIES.—Except as provided in subparagraphs (B), (C), (D), (E), and (F), the 1st vacancy 

in the office of a bankruptcy judge for each district specified 

in paragraph (1)— 

(i) occurring 5 years or more after the date established by section 1002(a)(2) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(B) DISTRICT OF DELAWARE.—The 3d, 4th, 5th, and 

6th vacancies in the office of a bankruptcy judge for the 

district of Delaware— 

(i) occurring 5 years or more after the date established by section 1002(a)(2) of Bankruptcy Judgeship 

Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(C) SOUTHERN DISTRICT OF FLORIDA.—The 1st and 2d 

vacancies in the office of a bankruptcy judge for the 

southern district of Florida— 

(i) occurring 5 years or more after the date established by section 1002(a)(2) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(D) DISTRICT OF MARYLAND.—The 1st vacancy in the 

office of a bankruptcy judge for the district of Maryland— 

(i) occurring 5 years or more after the date established by section 1002(a)(2) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(E) EASTERN DISTRICT OF MICHIGAN.—The 2d vacancy 

in the office of a bankruptcy judge for the eastern district 

of Michigan— 

(i) occurring 5 years or more after the date established by section 1002(a)(2) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 
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shall not be filled. 

(F) DISTRICT OF PUERTO RICO.—The 1st vacancy in 

the office of a bankruptcy judge for the district of Puerto 

Rico— 

(i) occurring 5 years or more after the date established by section 1002(a)(2) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(3) APPLICABILITY OF OTHER PROVISIONS.—Except as provided in paragraphs (1) and (2), all other provisions of section 

1223 of the Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 

note), section 2 of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note), and section 1002 of 

the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note) 

remain applicable to the temporary office of bankruptcy judges 

referred to in paragraph (1). 

(c) TEMPORARY OFFICE OF BANKRUPTCY JUDGES AUTHORIZED

BY THE BANKRUPTCY JUDGESHIP ACT OF 2005 AND EXTENDED BY

THE TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF

2012.— 

(1) EXTENSIONS.—The temporary office of bankruptcy 

judges authorized for the following districts by section 1223(b) 

of the Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note) 

and extended by section 2(a) of the Temporary Bankruptcy 

Judgeships Extension Act of 2012 (28 U.S.C. 152 note) are 

extended until the applicable vacancy specified in paragraph 

(2) in the office of a bankruptcy judge for the respective district 

occurs: 

(A) The southern district of Georgia. 

(B) The district of Maryland. 

(C) The district of New Jersey. 

(D) The northern district of New York. 

(E) The district of South Carolina. 

(2) VACANCIES.— 

(A) SINGLE VACANCIES.—Except as provided in 

subparagraph (B), the 1st vacancy in the office of a bankruptcy judge for each district specified in paragraph (1)— 

(i) occurring 5 years or more after the date of 

the enactment of this Act, and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(B) DISTRICT OF MARYLAND.—The 2d and 3d vacancies 

in the office of a bankruptcy judge for the district of Maryland— 

(i) occurring 5 years or more after the date of 

the enactment of this Act, and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(3) APPLICABILITY OF OTHER PROVISIONS.—Except as provided in paragraphs (1) and (2), all other provisions of section 

1223 of the Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 

note) and section 2 of the Temporary Bankruptcy Judgeships 

Extension Act of 2012 (28 U.S.C. 152 note) remain applicable 
S. 4996—7 

to the temporary office of bankruptcy judges referred to in 

paragraph (1). 

(d) TEMPORARY OFFICE OF BANKRUPTCY JUDGES AUTHORIZED

BY THE BANKRUPTCY JUDGESHIP ACT OF 1992 AND EXTENDED BY

THE BANKRUPTCY JUDGESHIP ACT OF 2005, THE TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2012, AND THE BANKRUPTCY

JUDGESHIP ACT OF 2017.— 

(1) EXTENSIONS.—The temporary office of bankruptcy 

judges authorized by section 3(a) of the Bankruptcy Judgeship 

Act of 1992 (28 U.S.C. 152 note), extended by section 1223(c) 

of Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note), 

extended by section 2(b) of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note), and further 

extended by section 1002(b) of the Bankruptcy Judgeship Act 

of 2017 (28 U.S.C. 152 note) for the district of Delaware and 

the district of Puerto Rico are extended until the applicable 

vacancy specified in paragraph (2) in the office of a bankruptcy 

judge for the respective district occurs. 

(2) VACANCIES.— (A) DISTRICT OF DELAWARE.—The 7th vacancy in the 

office of a bankruptcy judge for the district of Delaware— 

(i) occurring 5 years or more after the date established by section 1002(b)(2) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(B) DISTRICT OF PUERTO RICO.—The 2d vacancy in the 

office of a bankruptcy judge for the district of Puerto Rico— 

(i) occurring 5 years or more after the date established by section 1002(b)(2) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note), and 

(ii) resulting from the death, retirement, resignation, or removal of a bankruptcy judge, 

shall not be filled. 

(3) APPLICABILITY OF OTHER PROVISIONS.—Except as provided in paragraphs (1) and (2), all other provisions of section 

3 of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 

note), section 1223 of Bankruptcy Judgeship Act of 2005 (28 

U.S.C. 152 note), section 2 of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note), and section 

1002 of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 

note) remain applicable to the temporary office of bankruptcy 

judges referred to in paragraph (1). 

(e) TEMPORARY OFFICE OF BANKRUPTCY JUDGE AUTHORIZED

BY THE BANKRUPTCY JUDGESHIP ACT OF 1992 AND EXTENDED BY

THE BANKRUPTCY JUDGESHIP ACT OF 2005 AND THE TEMPORARY

BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2012.— 

(1) EXTENSIONS.—The temporary office of bankruptcy judge 

authorized by section 3(a) of the Bankruptcy Judgeship Act 

of 1992 (28 U.S.C. 152 note), extended by section 1223(c) of 

the Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note), 

and further extended by section 2(b) of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note) 

for the eastern district of Tennessee is extended until the 

applicable vacancy specified in paragraph (2) in the office of 

a bankruptcy judge for the district occurs. 
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(2) VACANCY.—The 1st vacancy in the office of a bankruptcy 

judge for the eastern district of Tennessee— 

(A) occurring 5 years or more after the date of the 

enactment of this Act, and 

(B) resulting from the death, retirement, resignation, 

or removal of a bankruptcy judge, 

shall not be filled. 

(3) APPLICABILITY OF OTHER PROVISIONS.—Except as provided in paragraphs (1) and (2), all other provisions of section 

3 of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 

note), section 1223 of the Bankruptcy Judgeship Act of 2005 

(28 U.S.C. 152 note), and section 2 of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note) 

remain applicable to the temporary office of bankruptcy judge 

referred to in paragraph (1). 

(f) TEMPORARY OFFICE OF BANKRUPTCY JUDGE AUTHORIZED BY

THE BANKRUPTCY JUDGESHIP ACT OF 1992 AND EXTENDED BY THE

TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2012.— 

(1) EXTENSIONS.—The temporary office of bankruptcy judge 

authorized by section 3(a) of the Bankruptcy Judgeship Act 

of 1992 (28 U.S.C. 152 note) and extended by section 2(c) 

of the Temporary Bankruptcy Judgeships Extension Act of 2012 

(28 U.S.C. 152 note) for the middle district of North Carolina 

is extended until the applicable vacancy specified in paragraph 

(2) in the office of a bankruptcy judge for the district occurs. 

(2) VACANCY.—The 1st vacancy in the office of a bankruptcy 

judge for the middle district of North Carolina— 

(A) occurring 5 years or more after the date of the 

enactment of this Act, and 

(B) resulting from the death, retirement, resignation, 

or removal of a bankruptcy judge, 

shall not be filled. 

(3) APPLICABILITY OF OTHER PROVISIONS.—Except as provided in paragraphs (1) and (2), all other provisions of section 

3 of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 

note) and section 2 of the Temporary Bankruptcy Judgeships 

Extension Act of 2012 (28 U.S.C. 152 note) (28 U.S.C. 152 

note) remain applicable to the temporary office of bankruptcy 

judge referred to in paragraph (1). 
S. 4996—9 

SEC. 5. REGULATIONS. 

Section 375(h) of title 28, United States Code, is amended 

by striking ‘‘may’’ and inserting ‘‘shall’’. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.