📅 2026 Update: Changes in Bankruptcy Law and Services

Since the original article was published, important updates have occurred in U.S. bankruptcy law. These changes can significantly affect how individuals facing repossession should approach their situations. The earlier article continues further down the page, providing foundational knowledge on bankruptcy.

📊 Chapter 13 Bankruptcy Plan Confirmation

In January 2025, the U.S. Bankruptcy Court for the Southern District of New York introduced a new electronic filing system for Chapter 13 bankruptcy plan confirmations. This change makes the process easier for both debtors and creditors.

It aims to reduce paperwork and speed up confirmation times, helping those in financial distress get back on track more efficiently.

📈 Means Test Adjustments

As of March 2024, the U.S. Department of Justice revised the median family income figures used in the Chapter 7 means test. This adjustment impacts eligibility for many debtors.

Those whose incomes fall below the new median may find it easier to qualify for Chapter 7 bankruptcy, providing an avenue to discharge most unsecured debts.

💵 Current Filing Fees

As of October 2026, the filing fees for bankruptcy have been updated. The fee for Chapter 7 is $338, for Chapter 11 is $1,738, and for Chapter 13 is $313. These fees are set by the U.S.

Bankruptcy Court and can change, so it's important for debtors to budget accordingly.

⏳ Processing Times

The processing time for Chapter 7 bankruptcy typically ranges from 3 to 6 months from filing to discharge. For Chapter 13, the process generally lasts 3 to 5 years, depending on the repayment plan. Understanding these timelines can help debtors plan their finances and expectations better.

📌 Key Points Summary

  • Chapter 13 plan confirmation is now electronic.
  • Means test adjustments may ease eligibility for Chapter 7.
  • Current filing fees are $338 for Chapter 7, $1,738 for Chapter 11, and $313 for Chapter 13.
  • Processing times are 3 to 6 months for Chapter 7 and 3 to 5 years for Chapter 13.

💡 Practical Tips for Managing Repossession Risk

Reviewing your specific financial situation with an attorney is essential for understanding your options.

📋 Understand Your Options

Know the types of bankruptcy available. Chapter 7 can discharge most unsecured debts, while Chapter 13 requires a repayment plan. This knowledge can guide you in choosing the best option for your situation.

📅 Complete Credit Counseling

Before filing for bankruptcy, you must complete credit counseling within 180 days. This step is critical as it helps you explore alternatives to bankruptcy and prepares you for the filing process.

📄 Prepare Your Forms

Gather all required forms for filing, including the Voluntary Petition and Schedules A-J. Completing these correctly is vital for a smooth filing process and can affect the outcome of your case.

🏦 Follow Up on Your Filing

After filing, attend the 341 Meeting of Creditors. This meeting allows creditors to ask questions about your financial situation. Being well-prepared can help alleviate concerns and improve your case's progress.

📚 Complete Debtor Education

Post-filing, you must complete a debtor education course before receiving a discharge. This course costs about $50 and is designed to help you manage your finances better in the future.

🏆 Services for Bankruptcy Help Ranked by User Reviews (2026)

This section highlights services that assist individuals dealing with bankruptcy and credit repair. The following rankings are based on Trustpilot data as of October 2026. Remember that star ratings can change over time, and unhappy customers often leave more reviews, which may skew perceptions.

🥇 1. CreditRepair.com

CreditRepair.com holds a Trustpilot score of **1.2. It has been known for providing credit repair services aimed at improving credit scores. However, it faces numerous negative reviews, with many customers complaining about billing practices.

This suggests that while the service may offer potential benefits, it comes with significant caveats.

🥈 2. Lexington Law

Lexington Law averages a Trustpilot score of **3.2. This service is recognized for helping clients dispute errors on their credit reports. While it offers valuable assistance, reviewers have mixed opinions about the quality of service, with some expressing dissatisfaction.

This variability may impact clients seeking reliable support during bankruptcy.

🆓 Free Government or Nonprofit Help

Several approved agencies provide credit counseling and debtor education services at low or no cost. These options can be especially beneficial for individuals facing financial difficulties. A list of approved agencies is available through the U.S.

Trustee Program, making it easier for people to find help without incurring additional expenses.

🔎 Comparing Bankruptcy Services

  • 💵 Cost of services and any hidden fees.
  • 🕒 Processing time for assistance.
  • 💬 Customer reviews and overall satisfaction.
  • 🏆 Reputation in handling bankruptcy-related issues.
  • 📝 Types of support offered, including credit repair and legal guidance.

❓ Frequently Asked Questions

❓ What is the automatic stay in bankruptcy?

The automatic stay is a legal provision that halts most collection actions once you file for bankruptcy. This includes repossessions, foreclosures, and wage garnishments, providing immediate relief to debtors.

🕒 How long does bankruptcy stay on my credit report?

Bankruptcy can remain on your credit report for 7 years (Chapter 13) or 10 years (Chapter 7). This can significantly impact your credit score and borrowing ability during this time.

📅 What are the eligibility requirements for Chapter 13?

To qualify for Chapter 13 bankruptcy, you must have a regular income and meet certain debt limits. As of 2026, unsecured debts must be less than $465,275, and secured debts must be less than $1,395,875.

📖 Can I keep my assets during bankruptcy?

Many states have exemption laws that protect certain assets from being sold to pay debts. Understanding these exemptions is critical in determining what you can keep during bankruptcy.

💡 How can I rebuild my credit after bankruptcy?

Rebuilding credit after bankruptcy involves taking steps like making timely payments on new accounts, keeping credit utilization low, and monitoring your credit report for errors. These actions can help improve your score over time.

🏦 What should I do if a creditor violates the automatic stay?

If a creditor violates the automatic stay, you may have grounds to take legal action. Document the violation and consult with a legal professional to explore your options for addressing the issue.

⚖️ Recent Bankruptcy Cases

Recent court rulings have clarified several aspects of bankruptcy law, especially concerning creditor actions and debtor protections. These rulings are significant for understanding how bankruptcy may unfold in real-world scenarios.

For those interested in learning more, feel free to browse more rulings on the news page.

End of October 2026 Update





Individuals who are in danger of going bankrupt also face the possibility of experiencing repossession. Repossession occurs when an individual is unable to repay a loan secured by property.

The thought of repossession is troubling and frightening. If you are in danger of facing repossession, you should contact your creditors immediately in order to attempt to establish an effective repayment plan. If this fails, it may be beneficial to consider speaking with a bankruptcy attorney. 

What to Do If You Are In Danger of Repossession