Blanket & case-specific
trustee bonds, issued for panel practice.

Bankruptcy trustee bonds — both blanket and case-specific — typically run 0.4% to 0.8% of the bond amount per year for well-qualified trustees. A $1,000,000 blanket bond commonly costs $4,000–$8,000 per year. Case-specific bonds for large individual cases are priced on a similar percentage, adjusted for the estate's specific risk profile.

A blanket bond (sometimes called a schedule bond) covers all cases assigned to the trustee up to a single aggregate limit — this is standard for Chapter 7 panel trustees and Chapter 13 standing trustees. A case-specific bond is issued for an individual bankruptcy case when the estate's value exceeds the blanket bond's limit, or when the US Trustee Program requires supplemental coverage.

The United States Trustee Program (a component of the US Department of Justice) administers trustee bond requirements in all federal bankruptcy courts, including the US Bankruptcy Court for the Southern District of Texas in Houston. Chapter 7 panel trustees, Chapter 11 trustees, and Chapter 13 standing trustees are all required to be bonded before handling cases.

The bond guarantees the trustee's faithful performance of duties under Title 11 of the US Code — honest administration of estate assets, accurate accounting, timely distributions to creditors, and compliance with US Trustee Program guidelines. Claims can be filed by creditors, debtors, or the US Trustee if the trustee commits misconduct.

For blanket bonds, the US Trustee Program sets a minimum based on the trustee's caseload volume and typical estate sizes — often starting around $250,000 and scaling up. For case-specific bonds, the bond must equal the estate value, since the trustee will be holding and distributing that amount.

Yes. Sureties experienced with the US Trustee Program can issue blanket bonds within 1–3 business days for trustees with clean credit and appropriate professional qualifications. Case-specific bonds for large estates may take additional underwriter review but are typically issued within a week of the application.

Yes. Bankruptcy trustee bonds are honesty/fidelity bonds — they cover embezzlement, misappropriation, and breach of fiduciary duty. Unlike insurance, the trustee is personally liable to reimburse the surety for any paid claim. Bonds do not cover honest errors of judgment — those are addressed under errors-and-omissions coverage, which is separate.