📅 2026 Update: Recent Changes in U.S. Bankruptcy Law

Since the original article was published, several important changes have occurred in U.S. bankruptcy law. These updates affect how individuals and businesses navigate bankruptcy. Readers can find the earlier article further down the page for additional context.

🔄 Chapter 13 Bankruptcy Plan Confirmation

In January 2025, a new electronic filing system was introduced for Chapter 13 bankruptcy plan confirmations in the Southern District of New York. This change aims to make the process easier for both debtors and creditors. It allows for quicker submissions and better tracking of case statuses.

📊 Means Test Adjustments

As of March 2024, the means test for Chapter 7 bankruptcy saw updates to the median family income figures. These changes can affect who qualifies for Chapter 7 based on their income. Debtors in certain income brackets may find the means test different from previous years.

💵 Current Fees and Costs

The filing fees for bankruptcy have not remained static. As of October 2026, the filing fee for Chapter 7 is $338. For Chapter 11, it stands at $1,738, and for Chapter 13, the fee is $313.

It is important for potential filers to be aware of these costs as they prepare for bankruptcy.

📅 Processing Times

The time it takes to complete bankruptcy processes varies. Chapter 7 bankruptcies typically take between 3 to 6 months from filing to discharge. In contrast, Chapter 13 bankruptcies generally last between 3 to 5 years, depending on the repayment plan.

📌 Key Points to Remember

  • 🔄 Chapter 13 confirmations now use an electronic filing system.
  • 📊 Means test figures were updated in early 2024.
  • 💵 Current filing fees for Chapter 7, 11, and 13 are $338, $1,738, and $313, respectively.
  • 📅 Chapter 7 takes 3 to 6 months; Chapter 13 lasts 3 to 5 years.

💡 Tips for Navigating Bankruptcy

It’s essential to review the details of your own situation with your attorney. Understanding your specific circumstances can guide your bankruptcy process.

📝 Know Your Forms

Before filing, ensure you have completed all required forms, including the Voluntary Petition and Schedules A-J. These forms are crucial for your bankruptcy case and can be found on the U.S. Courts website.

⏳ Complete Counseling on Time

Credit counseling must be completed within 180 days before filing. Make sure to schedule this in advance to avoid delays in your bankruptcy process.

📚 Understand Your Exemptions

Each state has its own exemption laws that protect certain assets during bankruptcy. Familiarize yourself with these laws to know what you can keep.

🔒 Automatic Stay Benefits

Once you file for bankruptcy, an automatic stay goes into effect. This means most collection actions, such as wage garnishments or repossessions, will stop immediately.

🕒 Plan for Processing Times

Keep in mind the typical processing times for Chapter 7 and Chapter 13 bankruptcies. This will help you manage your expectations and plan your financial future accordingly.

🏆 Credit Repair Services Ranked by User Reviews (2026)

This section highlights credit repair services that can assist after bankruptcy. These services focus on improving credit scores and handling credit report disputes. The order below is based on Trustpilot data as of October 2026.

Ratings may change over time, and remember that unhappy customers often leave more reviews, impacting the overall score.

🥇 1. CreditRepair.com

CreditRepair.com has been rated 1.2. It is known for offering credit repair services and helping clients improve their credit scores. However, numerous negative reviews highlight complaints about billing practices, which potential clients should consider.

🥈 2. Lexington Law

Lexington Law holds a Trustpilot score of 3.2. This service specializes in credit repair and assists clients with credit report disputes. While it has mixed reviews, some customers have expressed concerns over service quality, suggesting that experiences may vary.

🆓 Free Credit Counseling and Debtor Education

Approved agencies provide credit counseling and debtor education services, some of which may be free or low-cost. These resources can help individuals navigate bankruptcy and improve their financial literacy.

🔎 What to Compare When Choosing a Service

  • 🔍 Trustpilot scores and review counts
  • 📊 Types of services offered (credit repair, counseling)
  • ⚠️ Customer feedback regarding issues or complaints
  • 💰 Cost of services and any hidden fees

❓ Frequently Asked Questions

❓ What happens to my debts after bankruptcy?

Most unsecured debts can be discharged in Chapter 7 bankruptcy. In Chapter 13, remaining unsecured debts might be discharged after the repayment plan is completed.

💼 Can I keep my house during bankruptcy?

Whether you can keep your house depends on your state's exemption laws and your ability to continue making mortgage payments.

📆 How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy remains on your credit report for 10 years, while a Chapter 13 stays for 7 years. This can affect your credit score and borrowing options.

🤝 Can I file for bankruptcy more than once?

Yes, individuals can file for bankruptcy multiple times. However, certain time limits apply between filings, depending on the type of bankruptcy.

🧾 What should I do after my bankruptcy is discharged?

After discharge, start rebuilding your credit by monitoring your credit reports, paying bills on time, and considering secured credit cards or loans.

📞 How can I find help with my bankruptcy?

Approved agencies provide credit counseling and debtor education, which can assist you in understanding your options and responsibilities during and after bankruptcy.

⚖️ Recent Cases in Bankruptcy Law

Recent court rulings have clarified various aspects of bankruptcy law, impacting how bankruptcies are handled. Understanding these cases can help individuals navigate their own bankruptcy situations.

For more recent rulings, browse more rulings on the news page.

End of October 2026 Update





What To Do After You Have Filed For Bankruptcy:

For individuals who have declared bankruptcy, the recovery process is arduous and painstakingly long. The first step after bankruptcy comes when you and your bankruptcy trustee meet with your creditors to inform them of the filing; at this point all of your non-exempt assets must be liquidated. To are allowed to keep your vehicle, furniture and personal belongings up to a certain value after bankruptcy; however, all non-exempt liquid assets (such as certificates of deposit or cash) must be transferred to a court-appointed trustee.


 

After Bankruptcy


Getting a Loan After Bankruptcy:



Securing a loan or financing of any kind will be extremely difficult for the subsequent 2-3 years after bankruptcy. That being said, it is possible to attain small lines of credit (attached with high interest rates) once you have rebuilt your credit a year after bankruptcy. In certain cases, in may not be possible to secure financing for a car or home for at least 10 years after bankruptcy. This variance--in regards to the ability to obtain financing or credit after bankruptcy—correlates to the size of your bankruptcy filing-- particularly the severity of your debt portfolio—and the specific chapter you file under.

For example, if you engage in a Chapter 13 filing, your bankruptcy judgment will be dissolved from your credit report after seven years. If you engage in a Chapter 7 filing, your bankruptcy judgment will be dissolved from your credit report after 10 years. That being said, the Chapter 13 filing mandates that you fulfill all of your debts within three to five years according to your pre-negotiated management plan. Because there are six types of bankruptcy filings, it is critical to contact your legal representative to ensure that you have filed or will file under the best chapter given your financial position.


 


Taking Back Control After Bankruptcy:

The most crucial practice after bankruptcy is rebuilding your credit. You must prove to lenders that you are a legitimate candidate to receive financing or a loan. To encourage lending habits, you must portray a prudent and consistent financial schedule. In short, you must pay your debts consistently and on-time.



Here are a few steps that you can take to swiftly rebuild your credit after bankruptcy:



Maintain Employment: It is vital that you get—and keep—a job, if you do not already have one. A stable employment (and residential) history is imperative because it shows creditors that you are a reliable worker/consumer. This requirement; however, represents a problem—the ability to secure a job and a place to live may be related to your credit score, which of course, is severely diminished after bankruptcy.

Pay Your Bills: It is beyond imperative that you stay current on all of your monthly bills and payment obligations. You must make sure that your after bankruptcy credit score remains clean—one late payment can perpetuate a financial calamity. In addition to paying your bills, you should also open and maintain a checking and/or savings account.