📅 2026 Update: Recent Changes in Bankruptcy Law

Since the original article was written, several important changes have occurred in U.S. bankruptcy law. These updates affect eligibility, filing fees, and other aspects of the bankruptcy process. Readers can find more details on these changes below, while the earlier article continues further down the page.

💼 Changes in Bankruptcy Debt Limits

The Bankruptcy Threshold Adjustment and Technical Corrections Act expired on June 21, 2024. This caused the Subchapter V debt limit to drop from $7.5 million back to $3,024,725. Additionally, Chapter 13 eligibility limits were reinstated to a maximum of $465,275 for unsecured debt and $1,395,875 for secured debt.

These changes mean fewer individuals and businesses may qualify for certain bankruptcy protections.

💵 Updated Filing Fees

As of 2026, the federal filing fees for bankruptcy have changed. The Chapter 7 filing fee is now $338, while Chapter 13 costs $313. For Chapter 11, the fee has risen to $1,738.

These fees are critical to consider when filing for bankruptcy, as they add to the overall costs of the process.

💰 Changes in Bankruptcy Costs

Chapter 7 attorney fees typically range between $1,500 and $2,500. For Chapter 13 cases, attorney fees can vary from $2,500 to over $5,000, depending on complexity and location. Understanding these costs can help individuals plan better for their financial future.

📅 Processing Times Remain Steady

Filing for Chapter 7 bankruptcy usually takes about 3 to 6 months from start to discharge. In contrast, Chapter 13 cases may take 3 to 5 years, depending on the repayment plan. Chapter 11 cases can vary widely and may take several months to years based on their complexity.

📌 Key Changes Summary

  • 🔹 Debt Limits: Subchapter V dropped to $3,024,725; Chapter 13 limits reinstated.
  • 🔹 Filing Fees: Chapter 7 is $338, Chapter 13 is $313, Chapter 11 is $1,738.
  • 🔹 Attorney Fees: Chapter 7 ranges from $1,500 to $2,500; Chapter 13 from $2,500 to over $5,000.
  • 🔹 Processing Times: Chapter 7 takes 3 to 6 months, Chapter 13 takes 3 to 5 years.

💡 Tips for Navigating Bankruptcy

It's important to go over the details of your situation with your attorney. Understanding the specifics can help you make informed decisions.

⚖️ Understand Eligibility Requirements

Know the eligibility criteria for each bankruptcy type. For Chapter 7, you must pass the means test. For Chapter 13, ensure your debts are within the set limits.

These factors play a crucial role in determining your options.

📜 Complete Required Counseling

Before filing, you must complete a credit counseling course. This is a mandatory step and must be done within 180 days prior to filing. Make sure to choose an approved agency for this service.

📅 Keep Track of Deadlines

Be aware of the timelines for completing debtor education and submitting documents. Creditors have 60 days after the 341 meeting to object to a discharge, so staying organized is vital.

💵 Budget for Additional Costs

Plan for all associated costs, including filing fees and mandatory courses. These expenses can add up and should be factored into your overall financial strategy.

📝 Gather Necessary Documents

Collect all required documentation before filing. This includes income information, debts, and assets. Having everything ready helps streamline the filing process.

🏆 Bankruptcy Services Ranked by User Reviews (2026)

This section highlights services related to bankruptcy and credit repair, as they are relevant to individuals seeking financial help. The following services were ranked based on Trustpilot data as of October 2026. Scores can change over time, and star ratings are just one indicator of service quality.

🥇 1. Lexington Law

Lexington Law has been rated 3.2 on Trustpilot. This service is known for its credit repair and debt management offerings. However, reviewers mention some customer service issues, indicating that experiences may vary.

🥈 2. CreditRepair.com

CreditRepair.com holds a low rating of 1.2. It is also known for credit repair services and debt management. Unfortunately, numerous negative reviews point to customer service complaints, suggesting potential challenges for users.

🆓 Free Government and Nonprofit Help

Various legal aid organizations and the U.S. Trustee Program offer free or low-cost assistance for those in need. These resources can help individuals navigate the bankruptcy process without incurring high fees.

🔎 Key Comparison Points

  • 🔍 Service Ratings: Look at Trustpilot scores for insights.
  • 🔍 Service Range: Consider whether they offer additional resources like education and counseling.
  • 🔍 Cost Structure: Review fee transparency and any hidden costs.
  • 🔍 Customer Feedback: Read reviews for real experiences from other users.

❓ Frequently Asked Questions

❓ What is the means test for Chapter 7?

The means test determines eligibility for Chapter 7 bankruptcy. It compares your income to the state median; if it's lower, you may qualify.

❓ How long does the bankruptcy process take?

Chapter 7 bankruptcy usually takes 3 to 6 months. Chapter 13 can take 3 to 5 years, depending on the repayment plan.

❓ What are the requirements for Chapter 13?

To qualify for Chapter 13, you must have a regular income and your debts must be within certain limits: $465,275 for unsecured and $1,395,875 for secured debts.

❓ Are there any exemptions in bankruptcy?

Yes, the homestead exemption limits protection for equity in homes purchased within 1,215 days before filing to $214,000. This is important to consider for homeowners.

❓ What happens during the 341 meeting of creditors?

At the 341 meeting, creditors can ask you questions about your financial situation. It is important to be prepared and honest during this meeting.

❓ Can I change my bankruptcy case type later?

In some cases, you may convert your bankruptcy case from Chapter 7 to Chapter 13 or vice versa. This depends on eligibility and specific circumstances.

⚖️ Recent Cases Related to Bankruptcy

Recent court rulings have addressed various aspects of bankruptcy law, influencing how individuals and businesses navigate the process. These rulings can have significant impacts on the rights and obligations of those filing for bankruptcy.

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

End of October 2026 Update





Young adults just becoming acquainted with managing their own financial affairs may only see a bank as a place to store their money and take it out as needed. Those more familiar with how these financial institutions operate, though, understand that banks may be so much more. For one, the type of account for which a party signs up may be highly specific to their purpose. There are important distinctions to be made, for example, between checking accounts and money market deposit accounts.

On top of this, banks may serve an equally important service as a lender. Certainly, banks have the means and reputation to issue loans to average people. The question of eligibility, of course, lies with the loan applicant. If personal credit is to have a bearing on opening a savings account, it will likely affect an applicant's ability to secure a loan. Nonetheless, after credit is established and maintained with said savings account, this may be used as a gateway to an extension of credit via a savings account loan.

Some notes on savings account loans and how they may be obtained:

Facts to Know Before Obtaining a Savings Account Loan

To understand how to get a savings account loan, it would be helpful to know what one is. Savings account loans, known in some circles as passbook loans, are secured loans. A savings account loan is a high-interest, low-risk arrangement between borrower and lender.

For the debtor, the interest charged on savings account loans is higher than with other loans and for those of debtors with higher credit ratings. As is consistent with other methods of credit repair, these rates are the literal price that must be paid for the good that may be earned towards one's credit.

For the bank, what makes them receptive toward issuing someone a savings account loan is the low risk involved. If debtors default on their savings account loans, their accounts serve as the collateral and their contents may be reclaimed accordingly.

In obtaining a savings account loan, the process is as simple as filling out an application, but it should be noted that there are requirements and stipulations attached to securing this type of credit. Firstly, banks do not let debtors borrow against the entirety of their savings accounts, but rather about 80 to 90 percent of them.

They will also have bank-specific minimum deposits for taking out these loans. In addition, the issuer of a savings account loan will usually specify a minimum payment per month and the length of the loan repayment period required.