📅 2026 Update: Changes in Bankruptcy Law and Fees

Since the original article was written, several important updates have occurred in U.S. bankruptcy law. These changes affect filing fees, debt limits, and requirements for bankruptcy cases. Readers can find the original article further down the page for more details on bankruptcy processes.

📉 Changes in Debt Limits

The Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATC Act) expired on June 21, 2024. As a result, the Subchapter V debt limit for Chapter 11 reverted from $7.5 million to $3,024,725. Additionally, Chapter 13 eligibility thresholds have been reinstated to a maximum of $465,275 in unsecured debt and $1,395,875 in secured debt.

💰 Updated Filing Fees

The filing fees for bankruptcy cases have changed as of 2026. The Chapter 7 bankruptcy filing fee is now $338. For Chapter 13, the fee is $313, and for Chapter 11, it is $1,738.

These fees are important for anyone considering bankruptcy.

📚 New Legislation

The Bankruptcy Administration Improvement Act of 2025 was enacted on February 6, 2026. This act increased trustee compensation in Chapter 7 cases and extended quarterly fees for Chapter 11 cases for an additional five years. These changes aim to improve the bankruptcy process.

⏳ Processing Times

Processing times for different types of bankruptcy cases remain fairly consistent. Chapter 7 cases typically take about 3 to 6 months from filing to discharge. Chapter 13 cases may last 3 to 5 years, depending on the repayment plan. Chapter 11 cases can vary widely in duration.

📌 Key Takeaways

  • The Subchapter V debt limit is now $3,024,725.
  • Chapter 13 unsecured debt is capped at $465,275.
  • Chapter 7 filing fee is $338, while Chapter 11 is $1,738.
  • Processing times for Chapter 7 are 3 to 6 months.
  • New legislation has improved trustee compensation and fees.

💡 Tips for Navigating Bankruptcy

Review the details of your own situation with your attorney.

📝 Understand the Means Test

The means test plays a crucial role in determining eligibility for Chapter 7 bankruptcy. If your income is below the state median, you may qualify. If not, you must pass a disposable income test.

🔄 Complete Required Courses

Before filing, you must complete a credit counseling course. After filing, a debtor education course is also required. Each course typically costs between $20 and $100.

📅 Keep Track of Deadlines

Timely completion of credit counseling is essential. You must finish this within 180 days before filing. Additionally, creditors have 60 days after the 341 meeting to file objections to discharge.

🏠 Be Aware of Exemptions

Know about the homestead exemption cap. Under federal law, this limits equity protection in homes purchased within 1,215 days before filing to $214,000.

🔍 Explore Free Assistance

Consider reaching out to legal aid organizations for free or low-cost help. The U.S. Trustee Program also provides resources to assist with bankruptcy procedures.

🏆 Bankruptcy Services Ranked by User Reviews (2026)

In the realm of bankruptcy services, some companies provide credit repair and debt management assistance. The following rankings are based on Trustpilot data as of October 2026. Ratings can change, and unhappy customers often leave more reviews.

It's crucial to consider these scores alongside other factors.

🥇 1. CreditRepair.com

CreditRepair.com has been rated 1.2. It is known for offering credit repair services and debt management. Many reviewers have pointed out issues with customer service, which is a significant caveat.

Despite the low score, this service remains a choice for those seeking credit help.

🥈 2. Lexington Law

Lexington Law holds a rating of 3.2. This service is recognized for its credit repair services and debt management support. While some users report satisfaction, mixed reviews indicate there are customer service concerns as well.

It is important to weigh these factors when considering this service.

🆓 Free Government and Nonprofit Help

There are free options available for those in need. Legal aid organizations offer free or low-cost assistance to eligible individuals. The U.S.

Trustee Program provides resources and information on bankruptcy procedures, helping guide individuals through the process.

🔎 Considerations When Choosing a Service

  • 💬 Read user reviews for insights on service quality.
  • ⚖️ Compare fees and costs associated with each service.
  • 🔍 Look for available free options for assistance.
  • 📈 Check the company's history with credit repair.
  • 📅 Ensure they understand bankruptcy law and procedures.

❓ Frequently Asked Questions

❓ What is the means test for bankruptcy?

The means test is a calculation to determine eligibility for Chapter 7 bankruptcy. It assesses whether your income is below the state median or if you can pass a disposable income test.

🏦 How long does bankruptcy stay on my credit report?

Bankruptcy can remain on your credit report for up to 10 years for Chapter 7 and 7 years for Chapter 13. This can impact your credit score and ability to obtain new credit.

🕒 Can I expedite the bankruptcy process?

While some aspects of the process can be expedited, such as emergency filings, overall processing times are generally dictated by court schedules. Chapter 7 typically takes 3 to 6 months.

📅 What happens after my bankruptcy is discharged?

After discharge, most of your debts are wiped clean. However, you may still be responsible for certain types of debts, such as student loans or child support.

🏠 Can I keep my home in bankruptcy?

You may be able to keep your home depending on your state's exemptions. The federal homestead exemption cap limits equity to $214,000 for homes purchased within 1,215 days before filing.

🛡️ What are the benefits of filing for bankruptcy?

Bankruptcy can provide relief from overwhelming debt. It can stop collection actions, wage garnishments, and provide a fresh start financially.

⚖️ Recent Cases in Bankruptcy Law

Several recent court rulings have impacted bankruptcy law and procedures. These decisions may affect how individuals and businesses navigate their bankruptcy cases.

For more information, you can browse more rulings on the news page.

End of October 2026 Update





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The simply-titled but critically important financial plan is one's reference guide to planning for retirement, education, emergency, or any other eventuality that comes as part of the human condition. Piggybacking off the idea of serving an individual’s best interests when developing a financial plan, one idea that must be preserved throughout the creation of a financial plan is that any services rendered should be tailored to that client.

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Easy Overview of Financial Plans

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