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

Since the original article was published, several significant updates have taken place in U.S. bankruptcy law. Key changes include adjustments to debt limits and filing fees that directly impact Chapter 7, Chapter 11, and Chapter 13 bankruptcies. Readers can find the full details of the original article further down this page.

📉 Changes in Debt Limits

The Bankruptcy Threshold Adjustment and Technical Corrections Act expired on June 21, 2024. This caused the debt limits for Subchapter V of Chapter 11 and Chapter 13 cases to revert to lower amounts. The Subchapter V debt limit went from $7.5 million back to $3,024,725.

For Chapter 13, the maximum unsecured debt is now $465,275, and secured debt is $1,395,875.

💰 Updated Filing Fees

As of 2026, the filing fees for bankruptcy cases have been updated. A Chapter 7 bankruptcy now costs $338, while a Chapter 13 filing is $313. Chapter 11 has a higher filing fee of $1,738.

These fees are essential to consider for anyone contemplating bankruptcy.

🏦 Trustee Compensation Changes

The Bankruptcy Administration Improvement Act of 2025, enacted on February 6, 2026, increased trustee compensation in Chapter 7 cases. Additionally, it extended quarterly fees for Chapter 11 cases for an extra five years. This change may affect how cases are managed and the costs involved.

⏳ Processing Times

The typical processing times for bankruptcy cases remain similar but may vary. Chapter 7 cases usually take 3 to 6 months from filing to discharge. In contrast, Chapter 13 cases can take 3 to 5 years depending on the repayment plan.

Chapter 11 cases can take several months to years, reflecting the complexity of each case.

📌 Key Points Summary

  • The debt limits for Subchapter V and Chapter 13 have decreased.
  • Updated filing fees are now $338 for Chapter 7 and $313 for Chapter 13.
  • Trustee compensation increased under the new Bankruptcy Administration Improvement Act.
  • Processing times are generally consistent with previous figures.
  • Regular updates to bankruptcy laws can directly affect filing decisions.

💡 Tips for Navigating Bankruptcy

It's important to discuss the specifics of your situation with your attorney. Understanding your unique circumstances can help you make informed decisions about bankruptcy.

📊 Know Your Debt Limits

Be aware of the current debt limits for Chapter 13 and Subchapter V cases. Knowing these limits can help you determine your eligibility for different types of bankruptcy.

🎓 Complete Required Courses

Before filing for bankruptcy, you must complete mandatory credit counseling. After filing, debtor education courses are also required. These may cost around $20 to $100 each, so budget accordingly.

🗓️ Meet Important Deadlines

Ensure you complete credit counseling within 180 days before filing. Also, keep in mind that debtor education must be finished before you can receive a discharge.

🔍 Understand the Means Test

For Chapter 7 bankruptcy eligibility, pass the means test based on income. Your income must be below your state's median or meet the disposable income requirement.

📞 Seek Free Resources

There are free or low-cost help options available through legal aid organizations and the U.S. Trustee Program. These resources can assist individuals in navigating bankruptcy procedures.

🏆 Bankruptcy Services Ranked by User Reviews (2026)

This section details services relevant to bankruptcy management and credit repair. The data reflects Trustpilot scores as of October 2026, but scores can change over time. Ratings are just one metric, as dissatisfied customers often leave more reviews, which can skew perceptions.

🥇 1. Lexington Law

Lexington Law holds a Trustpilot score of 3.2. It is known for its credit repair services and debt management. However, some reviewers mention mixed experiences, particularly regarding customer service.

This service might be beneficial for individuals looking to improve their credit scores after bankruptcy.

🥈 2. CreditRepair.com

CreditRepair.com has a Trustpilot score of 1.2. It is recognized for its credit repair services and debt management as well. Unfortunately, the service has numerous negative reviews, with many complaints focused on customer service issues.

This may make it a less favorable option for those seeking assistance in managing their credit after bankruptcy.

🆓 Free Assistance Options

Free help is available through legal aid organizations and the U.S. Trustee Program. These resources offer guidance on bankruptcy procedures and may assist eligible individuals at no cost.

🔎 What to Compare When Choosing a Service

  • 📊 Trustpilot score and review count
  • 💬 Customer service reputation
  • 💼 Range of services offered
  • ⚖️ Expertise in bankruptcy-related issues
  • 💰 Pricing and hidden fees

❓ Frequently Asked Questions

🤔 What is the means test for Chapter 7 bankruptcy?

The means test determines your eligibility for Chapter 7 bankruptcy. Your income must be below the median income for your state or pass a disposable income test to qualify.

🏦 How long does a Chapter 13 bankruptcy last?

A Chapter 13 bankruptcy typically lasts between 3 to 5 years, depending on the repayment plan you set up in your filing.

📅 What are the filing fees for bankruptcy?

As of 2026, the filing fees are $338 for Chapter 7, $313 for Chapter 13, and $1,738 for Chapter 11 cases.

🏛️ Can I still keep my house in bankruptcy?

You may be able to keep your house if you meet certain criteria, such as being eligible for exemptions. The federal homestead exemption cap limits equity protection in homes purchased within 1,215 days before filing to $214,000.

📞 What resources are available for bankruptcy assistance?

Free or low-cost help can be found through legal aid organizations, the U.S. Trustee Program, and approved credit counseling agencies.

🕒 What happens after completing debtor education?

After completing the mandatory debtor education course, you may receive a discharge of your debts, finalizing the bankruptcy process.

⚖️ Recent Court Rulings in Bankruptcy Cases

Recent court rulings have further clarified various aspects of bankruptcy law, influencing how cases are handled. These rulings can have lasting effects on filing strategies and eligibility requirements.

You can browse more rulings on the news page for the latest updates on bankruptcy court decisions.

End of October 2026 Update





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