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

Since the original article was published, there have been significant changes in U.S. bankruptcy law. These updates affect various aspects, including filing fees, eligibility, and protections under the Servicemembers Civil Relief Act (SCRA). The earlier article continues further down the page.

📈 Bankruptcy Filings Increase

In the 12-month period ending March 31, 2026, total bankruptcy filings rose by 11.9%, reaching 591,850 cases. This is an increase from 529,080 the previous year. The rise in filings shows that more individuals and businesses are seeking bankruptcy protection during challenging economic times.

📊 Chapter 11 Subchapter V Eligibility Raised

In October 2026, Congress increased the debt ceiling for Subchapter V of Chapter 11 from approximately $3.4 million to $7.5 million. This change aims to help more small businesses access streamlined reorganization under Chapter 11. The increased limit allows more businesses to take advantage of these provisions.

💼 Current Filing Fees

As of October 2026, the filing fees for bankruptcy cases are as follows:

  • Chapter 7: $338
  • Chapter 11: $1,738
  • Chapter 13: $313

These fees are subject to change, so checking the U.S. Courts website for the latest information is important.

⏱️ Processing Times

The typical processing times for bankruptcy cases are:

  • Chapter 7: Usually completed within 3 to 6 months.
  • Chapter 11: Duration varies, taking several months to years depending on case complexity.
  • Chapter 13: Generally lasts 3 to 5 years.

📌 Key Updates Recap

  • 📈 Bankruptcy filings increased by 11.9% to 591,850 cases.
  • 💼 Chapter 11 Subchapter V eligibility raised to $7.5 million.
  • 💰 Current Chapter 7 filing fee is $338.
  • ⏱️ Chapter 7 processing time is 3 to 6 months.
  • ⚖️ SCRA now includes license portability for law licenses.

💡 Tips for Navigating Bankruptcy

Before making any decisions, it's important to go over the details of your own situation with your attorney.

📝 Understand the Means Test

Debtors must pass the means test to qualify for Chapter 7. This test compares your income to the median income in your state. Be prepared to provide detailed income information.

💵 Know Your Filing Options

Choose between Chapter 7, Chapter 11, and Chapter 13 based on your financial situation. If you have regular income and want to repay debts, Chapter 13 may be suitable. If you have limited income and wish to discharge most debts, Chapter 7 could be the better option.

📅 Meet Deadlines

Pay attention to deadlines for filing plans and proofs of claim. For Chapter 7, creditors must file within 70 days after the creditors' meeting. In Chapter 11, you have 120 days to file a plan.

Don’t miss these deadlines to avoid complications.

📄 Complete Required Forms

Make sure to fill out the required forms accurately. Chapter 7 requires Official Forms 101 and 106, while Chapter 11 and Chapter 13 require additional forms. These forms are available on the U.S.

Courts website.

🔍 Explore Free Resources

Take advantage of free resources from the U.S. Courts website and local legal aid organizations. These resources can provide valuable information and guidance without the cost of hiring a private attorney.

🏆 Free Options Ranked by User Reviews (2026)

No national paid service in this area met the review threshold. Instead, this section lists free government and nonprofit resources that can help individuals considering bankruptcy.

🥇 1. U.S. Courts Website

The U.S. Courts website is a comprehensive resource for individuals considering bankruptcy. It provides detailed information on procedures, eligibility, and required forms.

Users can find answers to common questions and access all necessary documents.

🥈 2. Legal Aid Organizations

Many states have nonprofit organizations that offer free or low-cost legal assistance to individuals considering bankruptcy. These organizations can help you understand your options and guide you through the process.

🥉 3. U.S. Trustee Program

The U.S. Trustee Program provides resources and information for individuals thinking about bankruptcy. They offer guidance on different bankruptcy chapters, the filing process, and what to expect during bankruptcy proceedings.

🔎 What to Check Before Paying for Help

  • 💰 Confirm if the service offers free options first.
  • 📜 Verify the organization's credentials and reputation.
  • 🏷️ Understand the total costs involved before agreeing to anything.
  • 🗓️ Check for any deadlines that might affect your case.

❓ Frequently Asked Questions

❓ What happens to my credit after bankruptcy?

Bankruptcy can significantly impact your credit score. Chapter 7 stays on your credit report for 10 years, while Chapter 13 stays for 7 years. However, many people rebuild their credit over time.

📄 Can I keep my house and car in bankruptcy?

It depends on the type of bankruptcy you file and your state’s exemption laws. In Chapter 7, you may be able to keep your house and car if they are exempt and you continue making payments.

⚖️ What debts are not dischargeable in bankruptcy?

Certain debts are typically not dischargeable, including student loans, child support, and some tax obligations. It’s important to understand what debts will remain after bankruptcy.

🏢 Can businesses file for bankruptcy?

Yes, both individuals and businesses can file for bankruptcy. Small businesses often use Chapter 11 Subchapter V for streamlined reorganization.

📆 How long does bankruptcy take?

The time it takes to complete bankruptcy varies. Chapter 7 typically takes 3 to 6 months, while Chapter 11 can last several months to years. Chapter 13 plans usually span 3 to 5 years.

🔍 Are there alternatives to bankruptcy?

Yes, alternatives include debt settlement, credit counseling, and repayment plans. It’s essential to explore all options before deciding on bankruptcy.

⚖️ Recent Court Rulings on Bankruptcy Cases

Recent court rulings have clarified aspects of bankruptcy law and how it applies to various cases. These rulings can impact how bankruptcy is filed and processed and may affect rights and obligations under bankruptcy laws.

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

End of October 2026 Update





Despite the newness of the Internet and the idea that some records prior to the mid-1990's are not available online, there is nonetheless a fair amount of reliable online information on bankruptcy (how to file for bankruptcy, what are your options). 



Online Resources You Must Know

U.S. Court’s Official Website

The U.S. Court’s official website represents more than just American Bankruptcy Code. Aside from being a pretty valuable resource in its own right, the U.S. Court’s website is also a nexus for other bankruptcy resources. Among its hyperlinked references are the Executive Office of the U.S. Trustee, the Internal Revenue Service, as well as miscellaneous lists of forms involved in declaring bankruptcy. 

SEC.gov

In the United States today, predominantly, it is individual debtors who are filing for bankruptcy under Chapter 13 or Chapter 11. For the individual, though, the SEC will likely be of limited use. After all, there is an implicit risk for shareholders of investing in corporations.



PACER

Especially for bankruptcy seekers looking to appeal an unfavorable decision, the desire to look up specific details about a particular court case at the Federal level is understandable. As far as government resources are concerned, the chief conduit by which people can log on to a website and download documentation on past hearings is PACER, the Public Access to Court Electronic Records service, sponsored by the U.S. Judiciary and run by the Administrative Office of the U.S. Court system.

As with bankruptcy proceedings, PACER is not limited to bankruptcy court and also features the contents of case files for district and appellate courts. These contents get fairly specific, too. All parties including the officers of the courts are listed, alongside the status of the case, which is updated daily pending changes.

While PACER is the de facto government service for retrieving court records, this does not mean it is popular with everyone. PACER has been roundly criticized for its perceived shortcomings. The primary charge levied against the service is that it charges money at all for access.

The $.08 per page user fee (set by Federal standards) is not much, but is still decried by many who feel public records in the public domain should be free to download. Additionally, there are persistent concerns about the security of sensitive information within PACER's records and the service's relatively archaic level of technological sophistication.



Legal Information Institute

Like the U.S. Court’s website, the Legal Information Institute (LII) of Cornell University Law School is not solely devoted to American bankruptcy law. (For that matter, it is not solely devoted to American law, containing sections on international law and other uniform conventions.) However, within this category, the wealth of information that is provided makes up for the site's overall lack of specificity.

As the name might imply, the primary reason the LII may be of such an asset to bankruptcy information seekers is how it condenses the information of hundreds of thousands of pages of legal documents into one easy-to-use, free database. The entirety of the United States Code (and with it, the Bankruptcy Code) is featured on the LII site, as well as the Federal Rules of Bankruptcy Procedure and all Supreme Court cases that relate to bankruptcy.

The LII is more than just a listing of court records and pieces of legislation as they read, though. The summary articles for topics such as bankruptcy, debtor-lender relationships and creditors' rights, for example, provide a frame of thinking for amateur bankruptcy law students. There is also an expansive glossary/encyclopedia provided by the Institute in the form of Wex, a community-oriented legal dictionary and reference.



Other Online Resources

Aside from official government websites and educational services associated with institutions of higher learning, there are other resources online that may serve readers' various purposes when trying to look for more information about bankruptcy. Of course, while official government sites may be excluded from this discussion, reputable news organizations and their online incarnations are not. For the average person, though, syndicated news feeds are mostly apt to inform a person of when a particular company is going out of business.

Blogs on bankruptcy are also likely to be news-based and devoted to a particular topic. While they are more subject to error and bias, they also may be written in a style that reflects a person's political ideologies or simply a voice that is appealing.

Lastly, but not least, online bankruptcy support groups can bring an individual in contact with others who may be able to help debtors based on their first-hand experience, as well as being there to listen to other users share their stories of hardship. In this regard, bulletin board-style forums may be lacking in generalized factual information and professional conduct, but may yield those who solicit their help with valuable emotional support.