A bipartisan bill extending 25 temporary judgeships on the bankruptcy bench is headed to the desk of President Donald J. Trump after the House of Representatives approved it late Monday night, Law360 reported. The Bankruptcy Administration Improvement Act of 2020 passed the Senate by unanimous consent Dec. 9 after being introduced by Sens. Lindsey Graham (R-S.C.) and Chris Coons (D-Del.) earlier that day, and likewise received a summary approval by the House this week. The bill extends 25 temporary bankruptcy court judgeships for a further five years in an effort to ensure the integrity and effectiveness of the country's insolvency system during a period of increased filings by large corporations in the wake of the COVID-19 pandemic. Among others, the extensions apply to all seven temporary seats on the Delaware bankruptcy bench, one of the busiest jurisdictions in the country for complex chapter 11 cases which has only a single permanent seat. The law also extends a temporary hike in fees owed to the U.S. Trustee program for its work on chapter 11 cases. Originally set to expire in 2022, the new fee structure — which increased the maximum fees owed by chapter 11 debtors to the bankruptcy watchdog from $30,000 to $250,000 — will be extended through 2025. Read more. (Subscription required.)
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