📅 2026 Update: Key Changes in Bankruptcy Law

Since the original article was published, there have been important changes in U.S. bankruptcy law. These updates affect eligibility limits, fees, and regulations related to Chapter 7, Chapter 11, and Chapter 13 bankruptcies. The following sections provide a closer look at these changes, and you can find further details in the original article below.

💰 Changes in Bankruptcy Filing Fees

Bankruptcy filing fees have changed as of 2026. The Chapter 7 filing fee is now $338, which includes a $245 filing fee, an administrative fee of $78, and a trustee surcharge of $15. For Chapter 13, the fee is $313, consisting of a $235 filing fee and a $78 administrative fee.

The Chapter 11 filing fee has increased to $1,738, which includes a $1,167 filing fee and a $571 administrative fee.

📊 Adjustments to Eligibility Limits

The expiration of the Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATC Act) on June 21, 2024, has altered eligibility limits. The debt limit for Subchapter V of Chapter 11 has returned to $3,024,725. For Chapter 13, the unsecured debt cap is now $465,275, and the secured debt limit is $1,395,875.

👨‍⚖️ New Bankruptcy Administration Improvement Act

Enacted on February 6, 2026, the Bankruptcy Administration Improvement Act increases trustee compensation in Chapter 7 cases and extends quarterly fees for Chapter 11 cases for an additional five years. This act aims to improve the efficiency and support of bankruptcy procedures.

⏳ Changes in Processing Times

Processing times for bankruptcies have remained relatively consistent, with Chapter 7 typically taking 3 to 6 months from filing to discharge. Chapter 13 cases can last 3 to 5 years, while Chapter 11 timelines vary widely based on case complexity, often taking several months to years.

📌 Summary of Key Points

  • Filing fees for Chapter 7, 13, and 11 have changed as of 2026.
  • Eligibility limits for Chapter 11 and Chapter 13 have reverted to earlier amounts.
  • The Bankruptcy Administration Improvement Act was enacted to increase trustee compensation.
  • Processing times remain similar, with Chapter 7 being the fastest.

💡 Tips for Understanding Bankruptcy Options

Reviewing your situation with an attorney can provide clarity on your bankruptcy options.

📝 Know Your Bankruptcy Type

Understand the differences between Chapter 7, Chapter 11, and Chapter 13 bankruptcies. Each type has unique eligibility requirements and implications for debt repayment.

📅 Stay Aware of Deadlines

Be mindful of deadlines, such as completing credit counseling within 180 days before filing and finishing debtor education before discharge. Missing these deadlines can delay your case.

📋 Prepare Your Documents

Gather all necessary financial documents before filing your bankruptcy petition. This includes income statements, debts, and asset information, which are vital for accurate filing.

📈 Monitor Processing Times

Processing times can differ based on the bankruptcy chapter you choose. Knowing the typical timelines can help set realistic expectations for your case.

💻 Utilize Free Resources

Explore free resources from legal aid organizations and the U.S. Trustee Program. They provide valuable information and assistance for those considering bankruptcy.

🏆 Bankruptcy Services Ranked by User Reviews (2026)

This section reviews companies offering credit repair and debt management services. These services can be beneficial when navigating bankruptcy and rebuilding credit. The following rankings are based on Trustpilot data checked in October 2026.

Ratings can change, and it's important to consider customer feedback when evaluating these companies.

🥇 1. Lexington Law

Lexington Law has been rated 3.2 on Trustpilot. The company is known for its credit repair services and debt management support. However, some users report mixed experiences, especially regarding customer service.

Despite these caveats, it remains popular among individuals seeking to improve their credit scores after bankruptcy.

🥈 2. CreditRepair.com

CreditRepair.com holds a low Trustpilot score of 1.2. It is known for credit repair services and debt management. Unfortunately, many users have shared negative experiences, particularly with customer service issues.

This high volume of complaints may lead potential customers to be cautious when considering their services.

🆓 Free Government and Nonprofit Help

Several free resources are available for individuals considering bankruptcy. Legal aid organizations offer low-cost or free assistance to eligible individuals. The U.S.

Trustee Program provides essential information on bankruptcy procedures. Additionally, approved credit counseling agencies can offer mandatory counseling services at little to no cost.

🔎 Considerations When Choosing a Service

  • 🏆 Trustpilot rating: Check the score and number of reviews for an overall sense of customer satisfaction.
  • 🗂️ Service offerings: Consider what specific services each company provides and if they align with your needs.
  • 💬 Customer feedback: Look at both positive and negative reviews to get a balanced view.
  • 🛠️ Fees: Compare the costs associated with different services to find what fits your budget.
  • 📞 Customer service: Evaluate the quality of support provided, as this can impact your experience.

❓ Frequently Asked Questions

❓ What is the means test for Chapter 7?

The means test determines eligibility for Chapter 7 bankruptcy. It compares your income to the state median and assesses disposable income to decide if you qualify.

📅 How long does a Chapter 13 bankruptcy last?

A Chapter 13 bankruptcy typically lasts 3 to 5 years. The duration depends on the repayment plan you establish and your financial situation.

💲 What are the costs of credit counseling courses?

Credit counseling and debtor education courses are mandatory and generally cost between $20 and $100 each. These courses must be completed before and after filing for bankruptcy.

🏛️ Can I choose my bankruptcy chapter?

Yes, you can choose the bankruptcy chapter that suits your financial situation. However, each chapter has specific eligibility requirements and implications for debt repayment.

🚪 What happens to my debts after bankruptcy?

After completing the bankruptcy process, most unsecured debts may be discharged, meaning you are no longer responsible for paying them. However, some debts, such as student loans and taxes, may not be discharged.

📜 Are there local rules for filing bankruptcy?

Yes, local courts may have specific rules affecting bankruptcy procedures. It's essential to check the rules relevant to your jurisdiction to ensure compliance.

⚖️ Recent Court Rulings in Bankruptcy Cases

Recent court rulings have provided clarity on various aspects of bankruptcy law, impacting how individuals and businesses navigate their financial challenges. These rulings can influence current practices in Chapter 7, Chapter 11, and Chapter 13 bankruptcies.

For more recent rulings, feel free to explore more rulings on the news page.

End of October 2026 Update





Discrimination is an unfortunate and upsetting reality of our society. Despite the fact the United States Federal Government and state governments have taken various types of action to outlaw discrimination, it continues to persist throughout the nation.

Discrimination occurs on all levels in various realms, and it may be based on numerous personal characteristics. Prejudice related to discrimination can be witnessed on the streets, in classrooms, and in office buildings. One particularly troubling variant is credit discrimination. Lenders have the right to deny an applicant credit for a variety of different reasons. If an individual has not secured an acceptable income, then a creditor can refuse to extend credit to that applicant.

However, many lenders use their authority to blatantly discriminate against applicants. Lenders have often refused to grant credit to an individual based on his/her race, sex, religion, and age. In order to help combat credit discrimination, the United States Federal Government has enacted various types of legislation prohibiting discriminatory practices.

Must Know Types of Credit Discriminations



Role of the ECOA and FHA Age Discrimination

Throughout history, lenders have been known to discriminate against applicants based on a variety of different factors. One factor that has often been taken into account by creditors is the age of the individual who is applying for credit. In many instances, a lender may oppose the idea of granting credit to an elderly individual. A common mentality amongst lenders is that elderly individuals are a high-risk investment.

In many cases, an elderly individual does not maintain a primary income from employment, and instead they rely on pension plans and retirement funds to supply necessary resources. The Equal Credit Opportunity Act (ECOA) was established in order to help ensure that lenders do not practice age discrimination, especially against elderly applicants.



Discrimination Against Women

Throughout the majority of history, women have been perceived as inferior to men. They have not been granted the same rights, privileges, and responsibilities with which men have been entrusted. However, in the last half century, women have gained a great deal of authority and have made great strides in attaining power. Nevertheless, discrimination against women continues to be a troubling reality throughout the nation. Women are often treated as subordinates to their male counterparts, and they often receive a smaller salary then men who are responsible for the same duties and tasks.

Likewise, women may find it difficult to obtain loans, while men of a similar situation may not have any difficulty. There are many different aspects of the credit system that breed discrimination against women. The Federal Fair Housing Act (FFHA) was also established in order to help abolish gender discrimination by lenders. This Act also prohibits discrimination based on marital status, which is often an integral part discrimination against women.



Racial Discrimination

In the United States, the Civil Rights Movement resulted in strides against racial discrimination within the legal system. However, racial discrimination is still widespread throughout the nation and can be witnessed in many different domains. Throughout much of history, lenders have discriminated against minority racial groups by refusing to grant them credit. Creditors often cite the tendency of minority communities to maintain low incomes as a primary reason they do not extend loans to individuals of a minority race.

Lenders have often been found to use methods of effectively violating government regulations aimed at preventing racial discrimination. Accordingly, the Federal Government enacted the Home Mortgage Disclosure Act (HMDA) and the Community Reinvestment Act (CRA). Both of these Acts were intended to diminish racial discrimination employed by lenders. Under this new legislation, lenders are required to meet the needs of all individuals within their vicinity, despite the race of the applicant. 



Other Forms of Credit Discrimination 

Discrimination can happen to any individual for any number of reasons. Though Federal legislation prohibits such behavior, companies and lenders can choose to discriminate against an applicant based on something as banal as eye color. While race, sex, age, and religion are the most common characteristics to be at the center of discrimination, they are not the only traits about which individuals maintain prejudices.

One type of credit discrimination that is beginning to gain national attention is discrimination based on sexual orientation. However, there are many other reasons that applicants experience discrimination. Federal legislation is not very specific in the types of discrimination that is prohibited under Federal law. Therefore, individuals who are subjected to discrimination based on sexual orientation, or any other characteristics, are not protected under Federal law. In order to address this problem, numerous states have chosen to create legislation that increases the scope of consumer protection.  



Reporting Credit Discrimination 

Credit discrimination is a very troubling occurrence in the United States. Like all forms of prejudice and discrimination, this type of bigotry should be reported to the appropriate authorities. If a victim of credit discrimination reports a company's misconduct, these creditors may receive due consequences for their discriminatory practices. However, in order for an unjust and corrupt corporation to receive penalties for their behavior, individuals must first report the discrimination they have experienced.

There are various different organizations and agencies that have been established in order to ensure that consumers remain protected. These organizations exist at both the Federal and the state level. An individual can contact a federal organization or a state agency in order to report misconduct on the part of creditors and corporations.

Generally, consumer protection agencies will not be permitted to address specific personal cases. However, the complaints that are filed may be included in a communal case against a questionable corporation. An individual who believes that they have been the victim of credit discrimination may want to speak with an attorney about a possible course of action as well.