Bankruptcy Administration Improvement Act (BAIA)

May 2024 Notice regarding Payments for Applicable Fiscal Year 2023 Cases: 

The Department of Justice has announced that there are insufficient funds available for transfer under 11 U.S.C. § 589(a)(f)(1) to pay chapter 7 trustee compensation under 11 U.S.C. § 330(e) in applicable (FY) 2023 cases.  In accordance with 11 U.S.C. § 330(e)(4) and the regulations, the amount for payment in applicable FY 2023 case is therefore $0. Despite there being no funds available for applicable FY 2023 cases, trustees should still file their payment eligibility certifications in applicable FY 2024 cases.  Additional information is provided on the Bankruptcy Administration Improvement Act Chapter 7 Trustee Payments page, and more information will be posted on this page about FY 2024 cases when it becomes available.

On January 12, 2021, the President signed into law the Bankruptcy Administration Improvement Act of 2020 (BAIA). Among several provisions of significance, the BAIA amends section 330 of the Bankruptcy Code (11 U.S.C. § 330) to include a new subsection (e); this subsection establishes a new payment for trustees serving in chapter 7 bankruptcy cases funded by excess collections in the U.S. Trustee System Fund and paid by the judiciary.

A chapter 7 trustee serving in a case filed under chapter 7 on or after January 12, 2021, and through September 30, 2026 (or a case originally filed under chapters 11, 12, or 13 on or after January 12, 2021, and later converted to chapter 7 on or before September 30, 2026), is eligible to receive up to $60 in compensation for each applicable case.

This new payment supplements the existing payment for trustees serving in chapter 7 cases. The trustees will receive this new payment from the Chapter 7 Trustee Fund established by section 330(e)(1). Chapter 7 trustees will be required to certify that they are eligible to receive the payment through the filing of a new CM/ECF event “Trustee Services Rendered Pursuant to §330(e)”. Use of any other CM/ECF event will result in a delay in payment or failure of the Chapter 7 trustee being identified as eligible for payment.

Chapter 7 trustees should review the Interim Regulations for Trustee Payments Under 11 U.S.C. § 330(e) for guidelines regarding the new payment available per BAIA. Chapter 7 trustees should refer specifically to Section 5: Trustee Eligibility for Payment, Section 6: Disbursing Section 330(e) Payments, and Section 7: Claims for Section 330(e) Payment. See additional resource links below.

Resources