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Title IV — Funding the bankruptcy system

H.R. 8902 · 116th Congress · Dec 8, 2020 · Lineage

IV Funding the bankruptcy system

Sec. 401 Bankruptcy fees

Title 28, United States Code, is amended—
(1)
in section 589a(b), by amending paragraph (1) to read as follows:

“(1) 38.50 percent of the fees collected under section 1930(a)(1);”

(2)
in section 1930—
(A)
in subsection (a)—
(i)
by amending paragraph (1) to read as follows:

“(1) For a case commenced under chapter 10, $250.”

(ii)
in paragraph (6)(B)—
(I)
by striking “During each of fiscal years 2018 through 2022, if” and inserting “If”; and
(II)
by striking “$200,000,000” and inserting “$250,000,000”; and
(iii)
in the undesignated matter following paragraph (7), by striking “chapter 7, or 13 of title 11” and inserting “chapter 7 or 10 of title 11”;
(B)
by redesignating subsections (c), (d), (e), and (f) as subsections (d), (e), (f), and (g), respectively;
(C)
by striking subsection (b) and inserting the following:

“(b) On April 1, 2022, and each April 1 thereafter, the dollar amounts in effect under paragraph (a)(6)(A) on the day before such April 1 shall be adjusted—

“(1) to reflect the change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for the most recent period ending immediately before January 1 preceding such April 1; and

“(2) to round to the nearest $25 the dollar amount that represents the change described in paragraph (1).

“(c) The Judicial Conference of the United States may prescribed additional fees in cases under title 11, other than cases under chapter 10 of that title, of the same kind as the Judicial Conference prescribes under section 1914(b) of this title.”

(D)
in subsection (g), as so redesignated—
(i)
in paragraph (1), by striking “(1) Under” and all that follows and inserting the following: “(1)(A) Under the procedures prescribed by the Judicial Conference of the United States, the district court or the bankruptcy court may waive all fees payable to the clerk of the court in a case under chapter 10 of title 11 for an individual if the court determines that such individual has income less than 150 percent of the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved and is unable to pay that fee in installments.

“(B) If the court determines that such an individual has income less than 100 percent of the income official poverty line applicable to a family of the size involved, such individual shall be conclusively presumed to be unable to pay that fee in instalments.”

(ii)
in paragraph (2), by striking “subsections (b) and (c)” and inserting “subsections (c) and (d)”.

Sec. 402 Trustee compensation

(a)
Amendments— Section 586 of title 28, United States Code, is amended—
(1)
in subsection (a)—
(A)
in paragraph (3)—
(i)
in the matter preceding subparagraph (A), by striking “chapter 7, 11 (including subchapter V of chapter 11), 12, 13, or 15” and inserting “chapter 7, 10, 11 (including subchapter V of chapter 11), 12, or 15”; and
(ii)
in subparagraph (C)—
(I)
by striking “chapters 12 and 13 of title 11” and inserting “chapters 10 and 12 of title 11”; and
(II)
by striking “sections 1224, 1229, 1324, and 1329” and inserting “sections 1024, 1025(k), 1224, and 1229”;
(B)
by striking paragraph (6); and
(C)
by redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively;
(2)
by amending subsection (b) to read as follows:

“(b) If the number of cases under chapter 10 or 12 of title 11 or subchapter V of chapter 11 of title 11 commenced in a particular region so warrants, the United States trustee for such region may, subject to the approval of the Attorney General, appoint 1 or more individuals to serve as standing trustee, or designate 1 or more assistant United States trustees to serve in cases under such chapter. The United States trustee may also establish, maintain, and supervise a panel of private trustees that are eligible and available to serve as trustees in cases under chapter 10 of title 11. The United States trustee for such region shall supervise the performance of the duties of any such individual appointed under this subsection.”

(3)
in subsection (d)(1), by striking “under subchapter V of chapter 11 or chapter 12 or 13 of title 11” each place it appears and inserting “chapter 10 or 12 of title 11 or subchapter V of chapter 11 of title 11”;
(4)
in subsection (e)—
(A)
in paragraph (1), in the matter preceding subparagraph (A), by striking “under subchapter V of chapter 11 or chapter 12 or 13 of title 11” and inserting “chapter 12 of title 11 or subchapter V of chapter 11”;
(B)
in paragraph (2)—
(i)
in the matter preceding subparagraph (A), by striking “under subchapter V of chapter 11 or chapter 12 or 13 of title 11” and inserting “chapter 12 of title 11 or subchapter V of chapter 11 of title 11”;
(ii)
in subparagraph (A), by striking “under subchapter V of chapter 11 or chapter 12 or 13 of title 11” and inserting “chapter 12 of title 11 or subchapter V of chapter 11 of title 11”; and
(iii)
in subparagraph (B)(ii), by striking “subparagraph (d)(1)(B)” and inserting “subparagraph (e)(1)(B)”;
(C)
by redesignating paragraphs (3), (4), and (5) as paragraphs (5), (6), and (7), respectively; and
(D)
by inserting after paragraph (2) the following:

“(3) The Attorney General, after consultation with a United States trustee that has appointed an individual under subsection (b) of this section to serve as standing trustee in cases under chapter 10 of title 11, shall fix—

“(A) a maximum annual compensation for such individual consisting of—

“(i) an amount not to exceed the 1.25 times the highest annual rate of basic pay in effect for a position at level IV of the Executive Schedule under section 5315 of title 5; and

“(ii) the cash value of employment benefits comparable to the employment benefits provided by the United States to individuals who are employed by the United States at the same rate of basic pay to perform similar services during the same period of time; and

“(B) a percentage fee not to exceed 10 percent.

“(4) An individual serving as standing trustee in cases under chapter 10 of title 11 shall collect such percentage fee from all payments received by such individual (including the value of property tendered to such individual) under plans in such cases for which such individual serves as standing trustee. Such individual shall pay to the United States trustee, and the United States trustee shall deposit in the United States Trustee System Fund—

“(A) any amount by which the actual compensation of such individual exceeds 5 percent upon all payments received under plans in such cases for which such individual serves as standing trustee; and

“(B) any amount by which the percentage fee for all such cases exceeds—

“(i) such individual’s actual compensation for such cases, as adjusted under subparagraph (A) of paragraph (3); plus

“(ii) the actual, necessary expenses incurred by such individual as standing trustee in such cases. Subject to the approval of the Attorney General, any or all of the interest earned from the deposit of payments under plans by such individual may be utilized to pay actual, necessary expenses without regard to the percentage limitation contained in paragraph (3)(B) of this subsection.”

(5)
by striking subsection (f).
(b)
Regulations— Not later than 1 year after the date of enactment of this Act, the Attorney General shall promulgate regulations to implement a process for substituting a trustee under section 1001 of title 11, United States Code, when necessary.