CONGRESSMAN
The U.S. House on Monday passed the Bankruptcy Administration Improvement Act of 2025, bipartisan legislation sponsored by Rep. Ben Cline, R-Va., aimed at strengthening the federal bankruptcy system while keeping it fully funded by users rather than taxpayers.
The bill now heads to the president’s desk for signature.
According to Cline, who represents Virginia’s 6th Congressional District, the legislation makes updates intended to improve efficiency and oversight within bankruptcy courts nationwide.
“My bill makes common-sense improvements to an essential part of our judicial system,” Cline said in a statement. “It keeps bankruptcy courts running efficiently, fairly compensates trustees, and ensures the system remains self-funded without burdening taxpayers.”
The measure extends existing user fees to maintain funding for bankruptcy court operations, preventing the need for taxpayer subsidies. It also increases per-case compensation for Chapter 7 trustees to reflect inflation and support effective case oversight.
In addition, the bill extends temporary bankruptcy judgeships, a move supporters say will help courts manage growing caseloads and reduce delays for families, small businesses and creditors navigating the bankruptcy process.
Cline said the legislation will help ensure bankruptcy courts can continue serving those who rely on them and expressed optimism that the bill will soon be signed into law.
-The Salem Times-Register
