📅 2026 Update: Key Changes in US Bankruptcy Law

Since the original article was written, there have been important updates to bankruptcy law that affect individuals and businesses. These changes include shifts in debt limits, filing fees, and new legislation impacting trustee compensation. Readers can find the full details of the original article further down the page.

📜 Changes in Debt Limits

The Bankruptcy Threshold Adjustment and Technical Corrections Act expired on June 21, 2024. This means that the debt limits for Chapter 13 and Subchapter V of Chapter 11 have reverted to lower amounts. The Subchapter V debt limit is now $3,024,725, while Chapter 13 has a maximum unsecured debt limit of $465,275 and a secured debt limit of $1,395,875.

💰 Updated Bankruptcy Filing Fees

As of 2026, the federal court filing fees have changed. The Chapter 7 filing fee is now $338, while Chapter 13 costs $313. In contrast, Chapter 11 has a higher fee of $1,738.

These changes can impact how individuals and businesses plan their bankruptcy proceedings.

🧑‍⚖️ Changes to Trustee Compensation

The Bankruptcy Administration Improvement Act of 2025, enacted on February 6, 2026, has increased trustee compensation in Chapter 7 cases. This act also extended the quarterly fees for Chapter 11 cases for an additional five years. This may affect the overall cost and process of filing for bankruptcy.

⏳ Processing Times

The time needed to process bankruptcy cases remains relatively stable. Chapter 7 cases typically discharge within 3 to 6 months. Chapter 13 may take between 3 to 5 years, depending on the repayment plan.

Chapter 11 processing times can vary widely and may take several months to years.

📌 Key Points Summary

  • 🏦 Debt limits for Chapter 13 and Subchapter V have decreased significantly.
  • 💵 Chapter 7 filing fee is now $338; Chapter 13 is $313.
  • 📈 Trustee compensation increased under new legislation.
  • ⏰ Expected processing times remain similar to previous years.

💡 Tips for Navigating Bankruptcy

It's important to review your specific situation with your attorney.

📋 Understand Eligibility Requirements

Before filing for bankruptcy, ensure you understand the eligibility rules. For Chapter 7, you must pass a means test, which checks if your income is below the state median. Chapter 13 requires regular income and debts within specific limits.

📆 Complete Required Courses

Both credit counseling and debtor education courses are mandatory. You must complete counseling within 180 days before filing and debtor education before discharge. Each course typically costs between $20 and $100.

📝 Prepare Your Documents

Getting your documents ready is crucial. This includes your bankruptcy petition, schedules, and proof of income. Incomplete documentation can delay your case or lead to dismissal.

⚖️ Attend the 341 Meeting

After filing, you must attend the 341 meeting of creditors. This meeting is where creditors can ask you questions about your finances. It's important to be prepared and answer honestly.

🏡 Be Aware of Exemptions

Know the exemptions available under bankruptcy law. For example, the federal homestead exemption cap limits equity protection in homes purchased within 1,215 days before filing to $214,000. Understanding your exemptions can help you keep your property.

🏆 Bankruptcy Services Ranked by User Reviews (2026)

The services listed below focus on credit repair and debt management, closely linked to the bankruptcy process. Scores are based on Trustpilot data as of October 2026, and they may change over time. Remember that lower ratings often reflect more unhappy customers, as they tend to leave reviews more frequently.

🥇 1. CreditRepair.com

CreditRepair.com has a Trustpilot score of 1.2. It is known for providing credit repair services and debt management. However, many reviewers have reported negative experiences, highlighting issues with customer service.

This service may not meet the needs of all users seeking assistance with bankruptcy-related matters.

🥈 2. Lexington Law

Lexington Law holds a Trustpilot score of 3.2. It is recognized for its credit repair services and debt management. Reviewers express mixed feelings, with some noting customer service challenges.

This service can be a consideration for those navigating bankruptcy, but potential users should weigh the pros and cons based on the reviews.

🆓 Free Government and Nonprofit Help

Free options are available for those who qualify. Legal aid organizations offer low-cost or free assistance. The U.S.

Trustee Program provides resources and information on bankruptcy procedures, and approved credit counseling agencies offer the mandatory counseling services needed before filing.

🔎 What to Compare When Choosing a Service

  • 📊 Review scores and feedback from other users.
  • 💬 Consider the types of services offered for debt management.
  • 🕒 Look at the processing times for the services.
  • 💰 Compare costs and any additional fees involved.
  • 📞 Assess customer service quality and accessibility.

❓ Frequently Asked Questions

❓ What is the means test in Chapter 7 bankruptcy?

The means test is a calculation to determine if your income is below the state median. If it is, you may qualify for Chapter 7 bankruptcy.

🏠 What is the homestead exemption cap?

Under federal law, the homestead exemption cap limits equity protection in homes purchased within 1,215 days before filing to $214,000. This cap affects how much equity you can protect during bankruptcy.

📅 How long does it take to complete Chapter 13 bankruptcy?

Chapter 13 bankruptcy generally takes 3 to 5 years to complete, depending on the repayment plan you establish with the court.

📜 What is the 341 meeting of creditors?

The 341 meeting is a mandatory meeting where creditors can ask questions about your financial situation. It typically occurs after you file for bankruptcy.

⏳ Are there deadlines for credit counseling?

Yes, you must complete credit counseling within 180 days before filing for bankruptcy. This is a crucial step in the bankruptcy process.

📊 How can I find free legal help?

You can look for legal aid organizations in your area, which often provide free or low-cost services to individuals who qualify based on income.

⚖️ Recent Court Rulings in Bankruptcy Cases

Recent court rulings have addressed various aspects of bankruptcy law, impacting both individuals and businesses. These rulings can shape how bankruptcy cases are handled in the future.

Explore more recent rulings in the news section.

End of October 2026 Update





A deferral is a term that is usually applied in financial practices, particularly for loans, debts, and credit cards. To defer a loan or payment simply means to postpone the actual time in which is repayment is to be made.

The process for a deferral will differ depending on the financial institution. In some cases, a deferral may not be granted because it is simply not offered by the financial institution, or the applicant for a deferral does not meet the imposed criteria and qualifications to defer payments on a loan.

For example, the United States Federal Student Loans will offer a deferral period for recent college graduates, typically a total of six months after the date of graduation. However, in certain circumstances, a student may have difficulty making the payments for the loan. Certain Federal Student Loans will offer for a deferral period, depending on certain criteria, such as unemployment or overall financial hardship. 

Deferral Defined