United States Trustees Act of 1985

United States Trustees Act of 1985 - Title I: Amendments to Title 28 of the United States Code - Requires a bankruptcy clerk appointed to a judicial district to be the official custodian of the records of the court and of the dockets of all bankruptcy cases and proceedings.

Requires the Attorney General to direct United States trustees appointed to bankruptcy cases in discharging their duties. Authorizes the Attorney General to investigate the official acts, records, and accounts of such trustees.

Directs the Attorney General to appoint one U.S. trustee for each of 30 bankruptcy regions constituted of specified Federal judicial districts. Reduces a U.S. trustee's term of office from seven to four years. Subjects a U.S. trustee to removal by the Attorney General without cause. Eliminates the 90-day limitation on service by an acting U.S. trustee. Permits the Attorney General to authorize a U.S. trustee designated to serve in more than one region to remain at his or her original official station.

Limits the maximum annual compensation for a person appointed as standing trustee in individual debt bankruptcy cases to step 1 of grade GS-16, generally, and up to step 6 of grade GS-16 if such person has significantly decreased actual expenses resulting in a decrease of his or her percentage fee. Authorizes the use of interest earned from the deposit of payments under plans in the cases for which such person serves to pay such person's actual, necessary expenses, without limitation, if the Attorney General approves.

Increases the maximum annual salary of a U.S. trustee to the rate of basic compensation for level IV of the Executive Schedule.

Repeals the rulemaking authority of the Director of the Administrative Office of the United States Courts.

Increases the filing fees required to commence bankruptcy cases to $100 for individual debt and liquidation cases, $500 for reorganization cases, and $1,000 for reorganization cases concerning a railroad. Requires a debtor to pay $400 to convert an individual debt or liquidation case to a reorganization case. Prescribes the portions of such fees to be transmitted to the Treasury by the clerk of the court. Prescribes monthly charges to be paid as administrative expenses to U.S. trustees in reorganization cases. Directs the U.S. trustees to transmit charges received to the Treasury. Allows the Attorney General to increase such fees and charges based on the amount necessary for repayment to the Treasury of amounts appropriated for the U.S. trustee system.

Title II: Amendments to Title 11 of the United States Code - Authorizes the bankruptcy court in an involuntary liquidation case to order the U.S. trustee to appoint an interim trustee on request by a party in interest. (Currently, the court makes such an appointment.) Authorizes the court, if it dismisses the petition for such case, to grant judgment against such party (currently, against all petitioners) for damages caused by the interim trustee taking possession of the debtor's property.

Authorizes the appropriate U.S. trustee to raise, appear, and be heard on any issue in any bankruptcy case or proceeding. Provides that the U.S. trustee for the judicial district in which a case is pending is eligible to serve as trustee in such case. Provides that the U.S. trustee qualifies whenever he or she serves in a bankruptcy case.

Requires the appropriate U.S. trustee (currently, the court) to determine the amount of, and sufficiency of the surety on, a bond required to be filed by an individual in order to qualify as a trustee in a bankruptcy case.

Prohibits the court from removing a U.S. trustee. Permits a U.S. trustee to remove a trustee in an individual debt or reorganization case or a trustee or examiner in a liquidation case after notice and a hearing, unless the court orders otherwise.

Prohibits compensation for service or reimbursement of expenses of U.S. trustees or standing trustees in individual debt bankruptcy cases. Requires any compensation paid to a U.S. trustee serving as trustee in a bankruptcy case to be paid to the Treasury.

Prohibits a trustee in a liquidation or reorganization case from employing a professional person who represents or is employed by a creditor, if the U.S. trustee objects.

Requires the U.S. trustee to convene and preside at a meeting of creditors after an order for relief has been filed in a bankruptcy case. Permits the U.S. trustee to examine the debtor at such meeting. Authorizes the U.S. trustee (currently, the court) to order a meeting of any equity security holders.

Permits a U.S. trustee to aggregate money of estates for which he or she serves as trustee for deposit or investment in order to increase earnings.

Provides for the appointment of original, interim, and successor trustees for liquidation cases by U.S. trustees. (Currently, the court has such authority.)

Requires a trustee in a liquidation case to file reports on the operation of a debtor's business and the administration of the debtor's estate with the appropriate U.S. trustee. Permits a creditors' committee to consult with, and make recommendations to, the U.S. trustee concerning the performance of the trustee's duties.

Authorizes a court to dismiss a voluntary liquidation case if the debtor fails to file information on his or her financial affairs within 15 days or such additional time as the court may allow after filing the petition commencing the case.

Grants a U.S. trustee the same rights and responsibilities as a trustee in the discharge of a liquidation case.

Provides for the appointment of committees of creditors and equity security holders in reorganization cases by the appropriate U.S. trustee. (Currently, the court has such authority.) Authorizes the U.S. trustee to request the appointment of a trustee or examiner and the termination of the trustee's appointment to such a case. Directs the U.S. trustee (currently, the court) to appoint any successor trustee or examiner. Permits a court to dismiss a reorganization case or to convert such a case to a liquidation case at the request of a U.S. trustee. Includes as causes for dismissal: (1) nonpayment of court fees; (2) failure of a debtor in a voluntary case to file information on his or her financial affairs within 15 days after filing the petition commencing the case; and (3) failure of a debtor to file his or her intention for property securing consumer debts within the prescribed period.

Provides for the appointment of a standing trustee or the designation of a trustee in an individual debt bankruptcy case by the appropriate U.S. trustee. (Currently, the court has such authority.) Permits the U.S. trustee to serve as such trustee.

Permits a court to dismiss an individual debt case or to convert such a case to a liquidation or reorganization case at the request of a U.S. trustee. Includes as a cause for dismissal the failure of a debtor to file: (1) information on his or her financial affairs within 15 days or such additional time as the court may allow after the filing of the petition commencing the case; or (2) his or her intentions for property securing consumer debts within the prescribed period.

Title III: Transition and Repealer - Repeals provisions that would repeal specified provisions providing for the appointment, compensation, staff, and termination of U.S. trustees as of September 30, 1986. Sets forth technical amendments providing for transition to the United States trustee system established by this Act.

Requires the Director of the Executive Office for United States Trustees to award a contract for a demonstration project of an electronic case management system in three judicial districts for use by the bankruptcy courts and U.S. trustees. Directs the Congress to evaluate the cost-effectiveness of the project in comparison to case management in districts which do not have electronic systems and in districts which participate in electronic case management systems maintained by the Administrative Office of the United States Courts. Provides for continuation of the project until the Congress acts upon its continuance, expansion, or termination. Specifies information to be provided by the system to the clerk of court and the U.S. trustee in each district. Establishes a fee to be charged for system access (with restrictions) to all entities except the Congress, the Executive Office for U.S. Trustees, the Administrative Office of the U.S. Courts, court clerks, trustees in pending cases, and the judges of the bankruptcy and district courts in the affected districts.

Title IV: Authorization for Appropriations for Bankruptcy Administration - Authorizes appropriations to carry out this Act. Requires the use of bankruptcy filing fees to reimburse the Treasury for such appropriations.

Title V: The Rules of Bankruptcy Procedure - Provides that Part X of the Rules of Bankruptcy Procedure shall apply in any district in which a U.S. trustee is serving until such part is superseded by Rules of Bankruptcy Procedure as prescribed by the Supreme Court.