Last revised (Transmittal 13-042) June 2, 2022

Guide to Judiciary Policy 

Vol. 13: Finance and Budget

Ch. 11: Chapter 7 Trustee Compensation

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§ 1120 Trustee § 330(e) Compensation

(a) A chapter 7 trustee rendering applicable services in a case filed under 

chapter 7 on or after Jan. 12, 2021, and through Sept. 30, 2026 — or a 

case originally filed under chapters 11, 12, or 13 on or after Jan. 12, 2021, 

and later converted to chapter 7 on or before Sept. 30, 2026 — is eligible 

to receive up to $60 in compensation for each applicable case. See: 

Bankruptcy Administration Improvement Act of 2020, Pub. L. No. 116-325, 

§ 3(e)(2)(A).

(b) These compensation payments are funded from quarterly fees collected 

by the Department of Justice (DOJ) and deposited in the United States 

Trustee System Fund in cases filed under chapter 11 of the U.S. 

Bankruptcy Code. See: 28 U.S.C. §§ 589a(f), 1930(a)(6). 

(c) Amounts available for chapter 7 trustees are determined annually based 

on:

(1) the available balance in the United States Trustee System Fund 

under 28 U.S.C. § 589a(f) (see: § 1120.10 (Determining Available 

Balance and Number of Applicable Cases)), and

(2) the case count of new filings and cases converted to chapter 7 

during a fiscal year (see: 28 U.S.C. § 589a(f)(1)(C); 11 U.S.C.

§ 330(e)(3)).

(d) Only one payment will be issued under 11 U.S.C. § 330(e) in each 

applicable case.

§ 1120.10 Determining Available Balance and Number of Applicable Cases

(a) After the end of fiscal years 2021 through 2026, the AO Director will 

determine the following:

(1) The judiciary’s costs of administering compensation payments 

under 11 U.S.C. § 330(e). See: 28 U.S.C. § 589a(f)(1)(B). These 

costs may include, but are not limited to:
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 2 

(A) Annual processes to: 

(i) determine the appropriate amounts to be paid to 

eligible trustees under 11 U.S.C. § 330(e)(4) and 

§ 1120.20 (Calculating Per-Case Compensation for 

Each Fiscal Year), and

(ii) develop guidance and provide ongoing support 

related to certifying such payments;

(B) Oversight, management, audit, and reconciliation of the 

Chapter 7 Trustee Fund (5116BT) account; 

(C) Software enhancements to judiciary case management and 

financial systems to administer the compensation payments 

under 11 U.S.C. § 330(e); and

(D) Staff costs associated with these efforts. 

(2) Amounts to fund all payments authorized by 11 U.S.C. § 330(e)(2). 

See: § 1120.20 (Calculating Per-Case Compensation for Each 

Fiscal Year); 28 U.S.C. § 589a(f)(1)(C). 

(b) Calculating the Amount Available for § 330(e) Compensation

Under 11 U.S.C. § 330(e)(4), a trustee who has rendered services in an 

applicable chapter 7 case is eligible to receive, for each such chapter 7 

case, the lesser of $60 or a pro rata share of the fees collected under 

28 U.S.C. § 1930(a)(6) and deposited to the United States Trustee 

System Fund under 28 U.S.C. § 589a(f)(1), less the amounts specified in 

§ 589a(f)(1)(A) and (B). 

(1) After each fiscal year ends, the judiciary will determine the number 

of applicable cases under 11 U.S.C. § 330(e)(4) for that fiscal year.

(2) Funding available for transfer from the United States Trustee 

System Fund to the Chapter 7 Trustee Fund (5116BT) account to 

pay eligible chapter 7 trustees is determined after applying the 

following offsets:

(A) For each of fiscal years 2021 through 2026, $5,400,000 of 

fees collected under 28 U.S.C. § 1930(a)(6). See: 

28 U.S.C. § 589a(f)(2); Bankruptcy Administration 

Improvement Act of 2020, Pub. L. No. 116-325, § 3(a)(2).
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 3 

(B) An amount necessary to fund the DOJ appropriations act for 

that fiscal year to offset the cost of the operations of U.S.

trustees. See: 28 U.S.C. § 589a(a) and (f)(1)(A). 

(C) The amounts determined in subparagraph (a)(1) above that 

are necessary to reimburse the judiciary for the costs of 

administering compensation payments under 11 U.S.C.

§ 330(e). 

(3) The funds remaining after the three offsets described above in 

subparagraph (b)(2) are available to transfer to the Chapter 7 

Trustee Fund (5116BT) account for payment to eligible chapter 7 

trustees under 11 U.S.C. § 330(e). See: § 1120.20 (Calculating 

Per-Case Compensation for Each Fiscal Year). 

(c) Calculating the Number of Applicable Chapter 7 Cases

(1) After the end of each fiscal year, the judiciary will calculate and 

determine the number of applicable cases under 11 U.S.C.

§ 330(e)(4) for that fiscal year. The following cases will be included 

in the case count calculation. See: Bankruptcy Administration 

Improvement Act of 2020, Pub. L. No. 116-325, § 3(e)(2)(A).

(A) For fiscal year 2021:

(i) any chapter 7 case filed on or after Jan. 12, 2021, and 

through Sept. 30, 2021, and

(ii) any case filed under chapter 11, 12, or 13 on or after 

Jan. 12, 2021, and later converted to chapter 7 on or 

before Sept. 30, 2021.

(B) For fiscal years 2022 through 2026:

(i) any chapter 7 case filed during the applicable fiscal 

year, and

(ii) any case filed under chapter 11, 12, or 13 on or after 

Jan. 12, 2021, and later converted to chapter 7 during 

the applicable fiscal year.

(2) Chapter 7 case counts will be derived from case filing data 

compiled by the judiciary. See: BAIA Court Case Count Reporting 

Instructions.
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 4 

§ 1120.20 Calculating Per-Case Compensation for Each Fiscal Year

(a) To determine the per-case compensation under 11 U.S.C. § 330(e) for the 

applicable fiscal year, the amount available under § 1120.10(b) 

(Calculating the Amount Available for § 330(e) Compensation) is divided 

by the chapter 7 case count defined in § 1120.10(c) (Calculating the 

Number of Applicable Chapter 7 Cases). 

(1) If the amount is $60 or greater, then the per-case compensation for 

that fiscal year will be $60 and the AO Director will request that an 

amount equal to $60 multiplied by the chapter 7 case count defined 

by § 1120.10(c) (Calculating the Number of Applicable Chapter 7 

Cases) be transferred from the United States Trustee System Fund 

to the Chapter 7 Trustee Fund (5116BT) account. 

(2) If the amount is less than $60, the per-case compensation for that 

fiscal year will be the pro rata share as calculated under paragraph

(a), and the AO Director will request that the full available balance 

be transferred from the United States Trustee System Fund to the 

Chapter 7 Trustee Fund (5116BT) account. 

(3) The amounts transferred to Chapter 7 Trustee Fund (5116BT) 

account for a given fiscal year will be available to clerks’ offices for 

payment certification to eligible chapter 7 trustees. See: § 1120.30

(Trustee Eligibility for Compensation). 

(b) The amount of the compensation each fiscal year is fixed under 11 U.S.C.

§ 330(e)(4) and the determination described in § 1120.10(b) (Calculating 

the Amount Available for § 330(e) Compensation). 

(c) The compensation for each applicable case filed under or converted to 

chapter 7 during that fiscal year will be published on the judiciary’s public 

website along with information on the timing of the § 330(e) payments. 

§ 1120.30 Trustee Eligibility for § 330(e) Compensation

§ 1120.30.10 Eligibility to Claim § 330(e) Compensation

(a) Appointment as the chapter 7 trustee in an applicable case does not by 

itself qualify the trustee for the compensation. 

(b) To be eligible to receive compensation, a chapter 7 trustee who has 

rendered services in an applicable case must make a claim for the 

compensation described in § 1120.20 (Calculating Per-Case 

Compensation for Each Fiscal Year). 
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 5 

(c) The chapter 7 trustee must file a certification, under penalty of perjury, that 

the information stated in the certification is true and correct. The trustee 

files this certification with the court that he or she has rendered services, 

i.e., performed one of the following duties outlined in 11 U.S.C. § 704 and 

the Federal Rules of Bankruptcy Procedure, in an applicable case. 

(1) Conducting, or filing any document required by rule or statute 

related to, a meeting of creditors required by 11 U.S.C. § 341; 

(2) Filing a report of no distribution;

(3) Filing a notice of assets;

(4) Filing a motion or notice to dismiss or convert the case or reviewing 

such a motion or notice filed by another party in the case; or

(5) Filing the chapter 7 trustee’s final report.

(d) Only one certification by one chapter 7 trustee may be filed in each 

applicable case. Trustees should not file multiple certifications for each 

action defined in paragraph (c), above. 

(e) A chapter 7 trustee is eligible for compensation without regard to whether 

the debtor has paid, or the court has waived, the filing fee in the case. 

See: 28 U.S.C. § 1930(f); Fed. R. Bankr. P. 1006(b) (Filing Fee). 

(f) Examples of actions in which a trustee will not be eligible for 

compensation for a case filed under or converted to Chapter 7 in an 

applicable fiscal year include:

(1) A case that is dismissed before a chapter 7 trustee is appointed;

(2) A case in which the chapter 7 trustee did not “render services” 

under paragraph (c), above; or

(3) A case in which a rejection of appointment is filed by the chapter 7 

trustee. See: Fed. R. Bankr. P. 2008 (Notice to Trustee of 

Selection). 

§ 1120.30.20 Special Considerations

As noted in § 1120(d), only one payment may be made for each case. Guidance for 

trustee eligibility in special situations is provided below.
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 6 

(a) Multiple Trustees Assigned in the Same Case

In a chapter 7 case in which more than one trustee has been assigned 

during the case, the chapter 7 trustee certified as rendering services in the 

case, consistent with § 1120.30.10, will receive the disbursement.

(b) Transferred Cases

In an applicable case that is filed in one district and later transferred to 

another district, both chapter 7 trustees who rendered services in the 

transferring and receiving districts and filed the required certification in the 

case may be paid, provided that:

(1) Both cases are eligible for § 330(e) compensation under 

§ 1120.10(c) (Calculating the Number of Applicable Chapter 7 

Cases); and

(2) The other requirements of § 1120.30.10 are also satisfied. 

(c) Converted or Reconverted Cases

Subject to the limitation of one payment per case (see: § 1120(d)), a 

trustee assigned to an applicable chapter 7 case that is later converted to 

a case under another chapter (including those that are later reconverted 

back to chapter 7) may be eligible for compensation for rendered services 

under § 1120.30.10. 

(d) Split or Severed Cases

Split or severed cases constitute two cases for purposes of compensation

eligibility. In addition to the trustee serving in the previously filed joint 

case, a trustee serving in an applicable chapter 7 case that is split or 

severed from a previously filed joint case may be eligible for compensation

for rendered services under § 1120.30.10. 

(e) Re-opened Cases

A trustee serving in an applicable chapter 7 case that has been re-opened 

may be eligible for compensation for rendered services under

§ 1120.30.10, only if a previous certification had not been filed.

Note: The certification may be filed in a closed case without a motion to 

reopen.
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 7 

§ 1120.40 Disbursing § 330(e) Compensation

When a chapter 7 trustee requests compensation under 11 U.S.C. § 330(e) as provided 

in § 1120.30.10(c), the certification must be filed in each case for which the trustee 

claims compensation. Payments will be made as follows:

(a) Only one § 330(e) payment will be issued for each applicable case. See:

§ 1120(d). 

(b) Compensation will not be disbursed until after the end of the applicable 

fiscal year, allowing time to complete the calculations under § 1120.10

(Determining Available Balance and Number of Applicable Cases) and 

§ 1120.20 (Calculating Per-Case Compensation for Each Fiscal Year). 

Note: Payments to chapter 7 trustees for § 330(e) compensation will be 

issued without regard to the timing of payments for § 330(b)

compensation. 

(c) Payments may not be made until: 

(1) the eligible chapter 7 trustee files the required certification under

§ 1120.30.10; 

(2) the amount available to make all payments is determined under 

§ 1120.10 (Determining Available Balance and Number of 

Applicable Cases); 

(3) the funds are available in the Chapter 7 Trustee Fund (5116BT) 

account; and

(4) the AO allots the funds to each clerk’s office. 

(d) The AO will allot funds to each clerk’s office based on the amounts 

calculated in § 1120.20 (Calculating Per-Case Compensation for Each 

Fiscal Year). Clerk’s offices may not begin certifying § 330(e)

compensation payments until funds have been allotted to them. 

(e) The clerk’s office must complete the payment cycle process at least once 

per quarter for applicable fiscal years as outlined below:

(1) The clerk’s office must run the following CM/ECF reports (see: 

Bankruptcy Administration Improvement Act – Trustee Payment 

Process) to ensure that certifications are identified for payment: 

(A) Trustee Services Rendered Under § 330(e) report, which will 

be retained by the clerk’s office as supporting documentation 

for the payment; and
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 8 

(B) Trustee Services Rendered Under § 330(e) Reconciliation 

report, which must be submitted to the AO at 

aoml_baia2020@ao.uscourts.gov. The AO will use this 

report to confirm funding has been provided for applicable 

cases to eligible trustees.

(Note: To ensure data consistency between these reports, the 

reports must be run in immediate succession.)

(2) The AO will compare the court’s data to the listing of applicable 

cases provided in § 1120.10(c) (Calculating the Number of 

Applicable Chapter 7 Cases) to ensure that: 

(A) cases were reported as applicable cases; and

(B) cases have not previously been submitted for comparison for 

payment. 

(3) Clerk’s office staff must reconcile any report discrepancies

identified as part of the payment cycle. 

(4) Once reconciled, the clerk’s office may certify payments, relying on:

(A) the trustee’s certification of services rendered; and

(B) the automated conditional logic built into the docket entries 

and reports provided by the AO in CM/ECF.

(5) Clerk’s office staff must enter and certify a payment voucher in 

JIFMS, consistent with the reconciled CM/ECF report. 

(6) The AO will submit certified payment requests processed in JIFMS 

to Treasury for disbursement.

(A) Beginning Oct. 1, 2022, all disbursements to chapter 7 

trustees must be made via EFT. (See: 31 CFR 208.3

(Payment by electronic funds transfer).) Clerk’s offices, 

however, should strongly encourage chapter 7 trustees to

accept EFT before Oct. 1, 2022.

Note: For guidance on an exception to the EFT requirement 

for payments made on behalf of a deceased trustee, see: 

Guide, Vol. 13, § 1220.45 (Payments on Behalf of a 

Deceased Payee). 
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 9 

(B) All chapter 7 compensation is subject to the Treasury Offset

Program. See: Guide, Vol. 13, § 1225 (U.S. Treasury 

Offset Program (TOP) and Vendor Payments).

(7) For general guidance on approving, certifying, and disbursing 

trustee compensation payments, see: Guide, Vol. 13, Ch. 4 

(Disbursing Appropriated Funds). 

(8) The reconciled Trustee Services Rendered Under § 330(e) report

must be retained as supporting documentation for the JIFMS 

payment voucher.

(9) Once the payment has been certified, the clerk’s office must docket

the Trustee Payment Under 11 U.S.C. § 330(e) Processed event in 

CM/ECF.

Note: If the clerk’s office fails to docket the payment event in 

CM/ECF, the case will continue to be displayed on the Trustee 

Services Rendered Under § 330(e) report and may result in a 

duplicate payment.

§ 1120.50 Claims for § 330(e) Compensation

(a) If an eligible chapter 7 trustee has certified that he or she has rendered 

services under § 1120.30 (Trustee Eligibility for Compensation) and the 

judiciary has posted payment information on its public website (see: 

§ 1120.20(c)), but the trustee has not received the § 330(e) payment, the 

trustee should contact the applicable bankruptcy court. 

(1) Clerk’s office staff should review the case and financial records to 

determine the reason a payment was not received and, if 

appropriate, issue the payment. 

(2) If it is determined that a payment was not issued for a basis not 

covered by § 1120.30.10(c), the chapter 7 trustee should be

instructed to submit his or her claim as described below in

paragraph (b).

(b) A chapter 7 trustee who claims compensation under § 330(e) for rendered 

services for a basis not covered by § 1120.30.10(c) (Eligibility to Claim 

11 U.S.C. § 330(e) Compensation) may submit a claim for compensation. 

The claim must provide: 

• the basis for compensation eligibility, and

• the signature and address of the claimant or an authorized 

representative.
Guide to Judiciary Policy, Vol. 13, Ch. 11 Page 10

Claims must be sent to the AO Director by: 

(1) Email, to aoml_baia2020@ao.uscourts.gov, or

(2) Mail, to One Columbus Circle NE, Suite 4-560, Washington, DC 

20544.

(c) The AO will review the case and determine whether the chapter 7 trustee 

is eligible for compensation. If appropriate, the applicable clerk’s office 

may certify the payment for disbursement. 

§ 1130 Expiration of Claims

(a) A chapter 7 trustee’s claim to unpaid compensation expires after six years. 

See: 31 U.S.C. § 3702(b)(1) (Authority to settle claims). 

(b) Payments of chapter 7 trustee compensation are authorized by statute 

and therefore not eligible under 31 U.S.C. § 1321 (Trust funds) for transfer 

to Treasury’s Payment of Unclaimed Moneys (6133BK) account.

[. . .]

(d) After six years from eligibility for compensation, 31 U.S.C. § 3702(b)(1)

may, depending on the circumstances, nullify or invalidate a chapter 7 

trustee’s claim.

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