BGOV Bill Analysis: S. 3424, Bankruptcy Trustee Compensation

Jan. 12, 2026, 10:15 AM UTC

Bankruptcy trustees would receive additional compensation for the first time in decades and temporary bankruptcy judges would have extended terms under S. 3424.

The measure would increase quarterly fees on businesses reorganizing under Chapter 11 of the bankruptcy code to account for the increased compensation to Chapter 7 trustees — the first bump since 1994. Trustees are court-appointed administrators that collect, liquidate, and distribute a debtor’s assets.

The bill also would extend the terms of temporary judges by five years to handle growing caseloads. Twenty-nine of the country’s 345 total bankruptcy judges are temporary, with the most authorized in ...

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