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

Since the original article was published, there have been several important changes in U.S. bankruptcy laws and practices. These updates impact how individuals and businesses approach bankruptcy, including new filing fees and expanded eligibility for certain bankruptcy chapters. The earlier article continues further down the page.

📈 Bankruptcy Filings Rise

In the 12 months ending March 31, 2026, total bankruptcy filings increased by 11.9%, reaching 591,850 cases. This rise is notable compared to 529,080 filings from the previous year. The surge reflects ongoing economic pressures faced by many individuals and businesses.

💼 Chapter 11 Subchapter V Changes

In October 2026, Congress permanently raised the debt ceiling for Subchapter V of Chapter 11 from about $3.4 million to $7.5 million. This change makes it easier for small businesses to access streamlined Chapter 11 reorganization. It aims to help them recover without the burden of high costs.

💵 Updated Filing Fees

As of October 2026, the fees to file for different types of bankruptcy are as follows:

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

These fees can change, so checking the U.S. Courts website for the latest information is advisable.

⏳ Processing Times for Bankruptcy

Processing times for bankruptcy can vary. For Chapter 7, cases are typically completed within 3 to 6 months. Chapter 11 can take months to years, depending on complexity.

Chapter 13 plans generally last 3 to 5 years.

📌 Key Takeaways

  • Bankruptcy filings rose by 11.9%.
  • Chapter 11 Subchapter V debt limit increased to $7.5 million.
  • Chapter 7 filing fee is now $338.
  • Processing times vary by chapter type.

💡 Tips for Navigating Bankruptcy

It’s important to discuss the details of your situation with your attorney. Understanding your options can help you make informed decisions about your financial future.

📝 Understand the Means Test

For Chapter 7 bankruptcy, you must pass the means test. This test compares your income to the median income in your state. Knowing your eligibility is a key step in the process.

💰 Keep Track of Filing Fees

Be aware of the filing fees. As of October 2026, Chapter 7 is $338, Chapter 11 is $1,738, and Chapter 13 is $313. Make sure you have the funds ready to avoid delays.

📅 Know Your Deadlines

Each type of bankruptcy has its own deadlines. For Chapter 7, creditors must file claims within 70 days after the first meeting. In Chapter 11, you have 120 days to file a plan.

Chapter 13 requires a plan submission within 14 days.

🔄 Follow Up on Processing Times

Processing times can vary. Chapter 7 usually takes 3 to 6 months, while Chapter 11 may take much longer. Chapter 13 plans last 3 to 5 years.

Be prepared for the timeline ahead.

📞 Seek Free Resources

Many states offer free or low-cost legal assistance through nonprofit organizations. These resources can help you navigate bankruptcy without the stress of high costs.

🏆 Free Options Ranked by User Reviews (2026)

No national paid service met the review threshold for this area, so this section lists free government and nonprofit resources that can assist with bankruptcy matters.

🥇 1. U.S. Courts Website

The U.S. Courts website offers comprehensive information about bankruptcy procedures and forms. It is a valuable resource for anyone considering bankruptcy, providing guidance on the process and what to expect.

🥈 2. Legal Aid Organizations

Many states have nonprofit legal aid organizations that provide free or low-cost assistance. They can help individuals understand their rights and navigate the bankruptcy process effectively.

🥉 3. U.S. Trustee Program

The U.S. Trustee Program offers resources and information for those considering bankruptcy. It provides educational materials to help individuals understand their options and the potential impact of bankruptcy.

🔎 Before Paying for Help

  • 📃 Check for free resources before paying anyone.
  • 📅 Understand the filing fees for bankruptcy.
  • 📈 Research your eligibility for different bankruptcy chapters.
  • 🔍 Read reviews of any service you consider.

❓ Frequently Asked Questions

❔ What are the different types of bankruptcy?

There are three main types of bankruptcy for individuals: Chapter 7, Chapter 11, and Chapter 13. Each offers different options for debt relief based on income and debt levels.

🔍 How does the means test work?

The means test is used to determine eligibility for Chapter 7 bankruptcy. It compares your income to the median income for your state and helps decide if you qualify for filing.

⏳ How long does bankruptcy stay on my credit report?

Bankruptcy can stay 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 future borrowing.

📅 Can I keep my property during bankruptcy?

In some cases, you can keep certain property during bankruptcy. Exemptions may allow you to retain essential assets, but this depends on your specific situation and state laws.

📝 What documents do I need to file for bankruptcy?

Debtors need to complete specific forms, including Official Forms 101 and 106 for Chapter 7. Additional forms are required for Chapter 11 and Chapter 13 cases.

💼 How can I rebuild my credit after bankruptcy?

Rebuilding credit after bankruptcy involves making timely payments, reducing debt, and possibly using secured credit cards. It’s essential to start this process as soon as possible.

⚖️ Recent Court Rulings on Bankruptcy Cases

Several recent court rulings have impacted bankruptcy laws and practices. These rulings can influence how cases are handled and the outcomes for debtors.

You can browse more recent rulings in the news section by visiting more rulings on the news page.

End of October 2026 Update





In personal bankruptcy cases, typically both the identity of the individual debtor and creditors, along with the value of the creditors' investments, are well established. Usually, the insolvent party is a consumer, the lender is a bank, and terms of the loan stocks are a qualified risk for investors.

For both these reasons, as variable as business bankruptcy information may be, it may also be inherently valuable to the public, who has a need to know what they stand to lose in the event of company liquidation or reorganization.

The Securities and Exchange Commission (SEC), primarily seeks fairness in business practices of financial institutions holding consumer's securities, but also strives to keep the public informed as part of the fight against corporate exploitation of its rights. As a result, SEC.gov, the official website of the SEC, contains a fair amount of business bankruptcy information that is available for the average investor to review.

What Can SEC.gov Do For Me?

Some considerations of what SEC.gov can do for you include:

One of the best aspects of SEC.gov is that it contains a comprehensive explanation on corporate bankruptcies. It disseminates this business bankruptcy information in a way that is not alienating to the everyday reader. In fact, the site bills its synopsis of corporate bankruptcy as "what every investor should know," and dispenses its metaphorical pearls of wisdom in the form of a dialog between expert and knowledge seeker, essentially serving as a "frequently answered questions" section as seen on other pages.

Some of the topics covered on the business bankruptcy part of SEC.gov include the fate of the company and one's investments post-filing, as well as the basics behind Chapter 7.

Continuing with this theme of following current events and the latest actions of companies of interest, SEC.gov is a viable gateway for the acquisition of business bankruptcy information, as it is required to be submitted to the Government by law. The EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system, the SEC's patented database of state-mandated filings, is a free conduit to information on a wide varieties of corporate entities, indexed by categories such as fiscal quarter and mutual funds companies.

By the same token, though, in its overall synopsis of bankruptcy (which as written, also heavily relates to Chapter 7 and Chapter 11 business bankruptcies), SEC.gov acknowledges the limited usefulness of the SEC in matters of corporate bankruptcy.

Although the site is an adequate starting point for obtaining business bankruptcy information, it is by no means the most technical. Furthermore, while the SEC may serve as an advocate for claimants in a civil or criminal suit against a corporation, under normal circumstances it will probably be unable to get investors back what is most dear to them: their money.