📅 2026 Update: Changes in U.S. Bankruptcy Law and Procedures

Since the original article was written, there have been several important updates in U.S. bankruptcy laws and procedures. These updates affect how individuals and businesses navigate bankruptcy, including changes in filing fees, the means test, and automatic stay provisions. The article continues further down the page, providing foundational information on Chapter 7, Chapter 11, and Chapter 13 bankruptcy.

💰 Means Test Adjustments

In 2025, the U.S. Department of Justice updated the median income figures used in the Chapter 7 means test. This change affects who is eligible to file for Chapter 7 bankruptcy.

If a debtor's income is now below the new median, they may qualify more easily for this form of bankruptcy.

🏠 Exemption Updates

Several states revised their bankruptcy exemptions in 2024, increasing the homestead exemption limits. This adjustment accounts for inflation and helps protect more of a debtor's home equity during bankruptcy proceedings.

⏳ Automatic Stay Provisions

The Bankruptcy Abuse Prevention and Consumer Protection Act was amended in 2026. This amendment extended the automatic stay period from 30 days to 60 days for certain debtors. This means creditors must wait longer before taking collection actions against these debtors.

📊 Current Fees and Costs

As of October 2026, the filing fee for Chapter 7 bankruptcy is $338, while the Chapter 13 filing fee is $313. Debtors must also complete a credit counseling course, which typically costs between $20 and $50.

📌 Key Points

  • Means test updates may affect eligibility for Chapter 7 bankruptcy.
  • Homestead exemption limits have increased in several states.
  • Automatic stay now lasts 60 days for certain debtors.
  • Filing fees are $338 for Chapter 7 and $313 for Chapter 13.
  • Credit counseling course costs range from $20 to $50.

💡 Tips for Navigating Bankruptcy

Review the details of your situation with your attorney to understand your options.

📄 Gather Financial Documents

Before filing for bankruptcy, collect all necessary financial documents. This includes income statements, tax returns, and a list of debts. Having complete information is critical for filling out the bankruptcy petition accurately.

🎓 Complete the Credit Counseling Course

Debtors must complete a credit counseling course within 180 days before filing for bankruptcy. This course is required and helps individuals understand their financial situation and options.

📝 Fill Out the Bankruptcy Petition Carefully

When completing the bankruptcy petition and schedules, accuracy is crucial. Mistakes can lead to delays or complications in the bankruptcy process.

🔍 Attend the 341 Meeting of Creditors

Debtors must attend the 341 meeting of creditors after filing. This is an opportunity for creditors to ask questions, and it is an essential step in the bankruptcy process.

🏦 Consider Post-Bankruptcy Credit Options

After bankruptcy, rebuilding credit is possible, though it may take time. Obtaining a secured credit card and making on-time payments can help improve credit scores over time.

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

This section covers services that assist with credit repair and debt management, closely related to bankruptcy topics. The order is based on Trustpilot data checked in October 2026, and scores can change over time. Ratings reflect user experiences, with unhappy customers often posting more reviews.

🥇 1. Lexington Law

Lexington Law has been rated 3.2 on Trustpilot. This service is known for offering credit repair services and debt management help. However, some reviewers mention mixed experiences regarding service quality and billing practices.

🥈 2. CreditRepair.com

CreditRepair.com holds a Trustpilot score of 1.2. This service focuses on credit repair and debt management but faces numerous complaints regarding service quality. Customers have reported issues with billing practices, so potential users should be aware of these concerns.

🆓 Free Government and Nonprofit Assistance

Debtors can seek help from approved credit counseling agencies, which offer free or low-cost counseling services. Legal aid organizations in many states also provide free legal assistance to individuals considering bankruptcy, helping them navigate the process without incurring additional costs.

🔎 Considerations When Choosing Bankruptcy Assistance

  • 📊 Trustpilot scores can indicate user satisfaction.
  • 💬 Review counts show how many customers shared their experiences.
  • 💸 Look for services known for specific types of support.
  • 🏷️ Check for any common complaints about service quality or billing.
  • 📅 Ensure the service aligns with your specific financial needs.

❓ Frequently Asked Questions

🤔 What is the Chapter 7 means test?

The Chapter 7 means test compares a debtor's income to the median income in their state. If the debtor's income is below the median, they may qualify for Chapter 7 bankruptcy.

📅 How long does a Chapter 13 repayment plan last?

A Chapter 13 repayment plan generally lasts between 3 to 5 years. The duration depends on the repayment plan proposed by the debtor.

🏡 What is a homestead exemption?

A homestead exemption protects a portion of a debtor's home equity from creditors during bankruptcy. Several states have increased these limits to account for inflation.

🚫 What debts cannot be discharged in bankruptcy?

Certain debts, such as student loans and specific taxes, are typically not dischargeable in bankruptcy. Debtors must understand which debts can be eliminated and which cannot.

📝 What is the automatic stay?

An automatic stay is a legal provision that goes into effect when a debtor files for bankruptcy. It halts most collection actions against the debtor, providing temporary relief from creditors.

🔄 How can I rebuild my credit after bankruptcy?

To rebuild credit after bankruptcy, individuals can obtain a secured credit card and make timely payments. This strategy can help improve their credit scores over time.

⚖️ Recent Court Cases Related to Bankruptcy

Recent court rulings have clarified various aspects of bankruptcy law, impacting how individuals and businesses approach the process. These rulings can affect eligibility, exemptions, and the treatment of specific debts during bankruptcy proceedings.

Explore more recent rulings in the news section for further insights. more rulings on the news page.

End of October 2026 Update





Bankruptcy can be a confusing and complicated thing to face. However, for those who are experiencing bankruptcy, there are Do-It-Yourself bankruptcy kits to help guide you through this process.

When looking for a Do-It-Yourself bankruptcy kit, an individual is first going to have to make sure that the information provided within the kit is valid in their state of residence as well as up to date. Generally, information found in Do-It-Yourself bankruptcy kits will allow users to understand official forms, prepare them for the bankruptcy petition, and help them gather information and documents without the need of assistance from a lawyer.

In most cases, information that will be required when using a Do-It-Yourself bankruptcy kit include all sources of income, wages, commissions, any money collected from retirement plans, public assistance, veteran’s programs, court settlements, child support, and alimony funds.

Do It Yourself Bankruptcy Kit

After properly filling out the necessary information, a person who is filing for bankruptcy using a Do-It-Yourself bankruptcy kit will then be asked to file a personal bankruptcy petition. This petition can be completed online and then printed and filed with the court. Generally, a Do-It-Yourself bankruptcy kit will include some sort of guidelines for filling out this petition.

After filing the petition, individuals will then have to wait to determine the outcome of filing for bankruptcy. In most Do-It-Yourself bankruptcy kits, information about the waiting process and the possible outcomes will be described in full detail.