Private Trustee Reform Act of 1998

Private Trustee Reform Act of 1998 - Amends the Federal judicial code to allow a United States trustee whose appointment to a panel or as a standing trustee is terminated or who ceases to be assigned to cases filed under title 11 of the United States Code (bankruptcy provisions) to obtain judicial review of the final agency decision by commencing an action in U.S. district court for the district in which the panel member or standing trustee resides, after exhausting all available administrative remedies which, if the trustee so elects, shall also include an administrative hearing on the record. Deems the trustee to have exhausted such remedies, unless the trustee elects to have an administrative hearing on the record, if the agency fails to make a final agency decision within 90 days after the trustee requests administrative remedies.

Authorizes a standing trustee to obtain judicial review of final agency action to deny a claim of actual, necessary expenses by commencing an action in U.S. district court in the district where the individual resides.

Directs the Attorney General to prescribe procedures to implement such provisions.

Requires: (1) the district court, in conducting judicial review under this Act, to determine whether to retain the case or to refer the case to a bankruptcy judge in the district; (2) a bankruptcy judge to whom a case is referred to submit a recommendation for disposition to the district court based solely on a review of the administrative record before the agency; (3) a final order or judgment to be entered by the court after considering the bankruptcy judge's recommendation and after reviewing those matters to which any party has timely and specifically objected; and (4) the agency decision to be affirmed unless it is unreasonable and without cause based upon the administrative record before the agency.

Grants the U.S. district courts jurisdiction to review final agency decisions and actions pursuant to this Act. Authorizes bankruptcy judges to submit recommendations to such courts.