📅 2026 Update: Recent Changes in Bankruptcy Law and Fees

Since the original article was published, there have been significant updates to bankruptcy laws and fees in the U.S. These changes can impact individuals seeking debt relief through Chapter 7, Chapter 11, or Chapter 13 bankruptcies. The details below highlight the key updates while the earlier article continues further down the page.

🏦 Bankruptcy Fee Changes

As of 2026, the federal court filing fees for bankruptcy have been set at $338 for Chapter 7, $313 for Chapter 13, and $1,738 for Chapter 11. These fees reflect adjustments made to better align with current economic conditions. Additionally, attorney fees for Chapter 7 cases typically range between $1,500 and $2,500, while Chapter 13 cases can cost from $2,500 to $5,000 or more, depending on the complexity and location.

📊 Changes to Debt Limits

The Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATC Act) expired on June 21, 2024. This caused some important debt limits to revert. For Chapter 13, the maximum unsecured debt is now $465,275, and secured debt is capped at $1,395,875.

For Subchapter V of Chapter 11, the debt limit returned to $3,024,725.

📅 Processing Times

Processing times for bankruptcy cases remain relatively stable. Chapter 7 cases typically take 3 to 6 months from filing to discharge, while Chapter 13 can last 3 to 5 years, depending on the repayment plan. Chapter 11 timelines vary widely and can extend from several months to years, based on case complexity.

📚 New Bankruptcy Legislation

The Bankruptcy Administration Improvement Act of 2025, enacted on February 6, 2026, raised trustee compensation in Chapter 7 cases and extended quarterly fees for Chapter 11 cases for another five years. Additionally, the Bankruptcy Threshold Adjustment Act of 2026 aims to permanently increase the Subchapter V debt limit back to $7.5 million and raise Chapter 13 limits to below $2,750,000.

📌 Key Updates Summary

  • 📄 Bankruptcy filing fees for Chapter 7, 13, and 11 are now $338, $313, and $1,738.
  • 📊 Debt limits for Chapter 13 and Subchapter V have been adjusted.
  • ⏳ Processing times remain 3 to 6 months for Chapter 7 and 3 to 5 years for Chapter 13.
  • 🏛️ New legislation affects trustee compensation and fees for Chapter 11.
  • 📅 Ongoing efforts in legislation aim to raise debt limits for bankruptcy options.

💡 Tips for Navigating Bankruptcy Options

Consider discussing your situation with an attorney to ensure you understand the best path for your needs.

📝 Understand Eligibility Requirements

Each bankruptcy chapter has specific eligibility rules. For Chapter 7, a means test determines if your income is below the state median or if you can pass a disposable income test. Chapter 13 requires regular income and debts within set limits.

📚 Complete Mandatory Courses

Before and after filing for bankruptcy, you must complete credit counseling and debtor education courses. These courses typically cost between $20 and $100 each and are essential for your case to proceed.

⏰ Pay Attention to Deadlines

Timely completion of credit counseling is crucial. It must be done within 180 days before filing. Debtor education must be completed before receiving a discharge, and creditors have 60 days after the meeting of creditors to file objections.

🔍 Explore Free Resources

Numerous legal aid organizations offer free or low-cost assistance to those who qualify. The U.S. Trustee Program also provides resources and information on bankruptcy procedures, which can be beneficial for those seeking help.

⚖️ Evaluate Your Options Carefully

When considering bankruptcy, weigh the pros and cons of each chapter. Chapter 7 offers quick relief from debts, while Chapter 13 allows for a repayment plan but takes longer to complete. Assess your financial situation to choose the best option.

🏆 Ranked by User Reviews (2026)

This section covers services related to debt management and credit repair, relevant for those exploring bankruptcy options. The ranking follows Trustpilot data checked in October 2026, reflecting user experiences and reviews. Remember, scores can change, and unhappy customers often leave more feedback, so consider this when evaluating services.

🥇 1. Lexington Law

Lexington Law has been rated 3.2. This service is known for its credit repair services and debt management support. While many users appreciate its offerings, some reviewers have noted issues with customer service, which may impact their overall experience.

🥈 2. CreditRepair.com

CreditRepair.com holds a low score of 1.2. It specializes in credit repair and debt management services. However, numerous negative reviews highlight consistent customer service complaints, suggesting potential challenges for users seeking assistance in managing their debts.

🆓 Free Government and Nonprofit Help

Many government and nonprofit organizations provide free services for individuals in need of bankruptcy assistance. These include legal aid organizations that offer low-cost or free legal advice, as well as credit counseling agencies approved by the U.S. Trustee Program to provide necessary counseling services.

🔎 Considerations When Choosing Services

  • 📊 Compare Trustpilot scores and review counts.
  • 💬 Look for feedback on customer service quality.
  • ⚖️ Review the types of services offered.
  • 💰 Assess pricing structures for transparency.
  • 📚 Verify credentials and accreditations of the service.

❓ Frequently Asked Questions

❓ What is the means test for Chapter 7 bankruptcy?

The means test determines if you qualify for Chapter 7 bankruptcy. It compares your income to the median income for your state. If your income is below the median, you may qualify; otherwise, you must pass a disposable income test.

💳 How long does it take to complete a Chapter 13 bankruptcy?

A Chapter 13 bankruptcy typically lasts between 3 to 5 years, depending on the repayment plan you establish. The timeline is influenced by the total amount of debt and the repayment terms agreed upon in your plan.

🏠 What is the homestead exemption cap?

The federal homestead exemption cap limits equity protection in homes purchased within 1,215 days before filing for bankruptcy to $214,000. This is important for those looking to protect their home equity during bankruptcy proceedings.

📅 Are there deadlines for credit counseling?

Yes, credit counseling must be completed within 180 days before you file for bankruptcy. This step is essential to ensure your case can proceed smoothly through the court system.

🔍 What types of debts can be discharged in bankruptcy?

Bankruptcy can discharge various unsecured debts, such as credit card debt, medical bills, and personal loans. However, certain debts, like student loans and child support, typically cannot be discharged.

💼 Can businesses file for bankruptcy?

Yes, both individuals and businesses can file for bankruptcy. Businesses can utilize Chapter 11 to reorganize their debts, while individuals may choose between Chapter 7 or Chapter 13 based on their financial situation.

⚖️ Recent Court Rulings in Bankruptcy Cases

Recent court rulings have highlighted changes in bankruptcy laws and their implications for individuals and businesses. These rulings reflect ongoing adjustments in the bankruptcy landscape, influencing how cases are handled.

For more details on recent rulings, check more rulings on the news page.

End of October 2026 Update





What is Debt Help?



Debt help refers to any means or measure which provides advice, resources or information concerning the alleviation of debt. Debt help is offered in a variety of forms; an individual consumed by mounting debt can seek the debt help of a credit counseling professional, agency or other financial institution. Furthermore, a debt holder can secure debt help through a number of online or tangible resources—this form debt help typically comes in pamphlet or web-page form and consists of merely advice or tips on how to mitigate problems associated with debt. 

How Do I Obtain Debt Help

The most common form of debt help is debt consolidation. This act effectively combines a holder’s multiple debts into an extensive/singular debt package. As a form of debt help, consolidation diminishes the consumer’s exposure to multiple or higher interest rates, late fees and other penalties associated with a repayment plan. Consolidation also enables a consumer to provide a single monthly payment--at a reduced rate—to pay-off all associated debts.



How do I Obtain Debt Help?

As stated above, an individual—consumed by debt—may secure debt help from a number of resources. Individuals in debt are by no means alone—the United States Federal Reserve estimates that Americans are approximately in $2 trillion worth of debt or roughly $18,000 per household. For these individuals, debt help should be attained from a professional—licensed credit counselors are adept in organizing and explaining a consumer’s debt to streamline a consolidation process or to effectively create a budget. 

The first step to seeking debt help is to analyze whether it is necessary. There is no specific amount of debt that will denote a consumer’s need for professional debt help. To analyze the inclusion of professional debt help, the consumer needs to calculate his/her disposable income (amount of money available to spend after taxes) against his/her debts. If the figure derived from this calculation is less than desirable or not enough to buy necessities (food, clothes, housing payments etc.) the individual will need to seek the aid of professional debt help.

If the consumer is facing crippling debts, they must begin a professional debt help search by contacting credit counseling or debt consolidation agencies in their area. Professional debt help institutions will be listed online or in the Yellow Pages—simply search these resources to compile a list of all professional debt help locations in your area. 

When searching for debt help, contact institutions that are comprised of licensed credit counseling agents; the institutions should also be non-profit agencies. Also, be wary of companies that immediately urge the filing of a debt management plan—professional debt help agencies should take an interest to the consumer and develop a plan that satisfies the individual’s particular needs. 

When the consumer finds a reputable and professional credit counseling agent, the individual will inspect the consumer’s debts to either consolidate the figures or establish a budget. The counselor may also advise bankruptcy filing—this measure is considered more drastic and reserved for individuals who are crippled by mounting debts. If consolidation is chosen, the counselor will contact the borrower’s creditors to negotiate a reduced payment plan. After each creditor is contacted, the debts are agglomerated into one all-encompassing debt.

In addition to establishing budgets or filing for consolidation, a professional debt help agent may also initiate a do-it-yourself consolidation where the borrower will transfer all unsecured debts to the credit card that carries the lowest APR.