📅 2026 Update: Key Changes in Bankruptcy Law

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

💰 Bankruptcy Fee Adjustments

As of 2026, the Chapter 7 bankruptcy filing fee is $338. This includes a $245 filing fee, a $78 administrative fee, and a $15 trustee surcharge. The Chapter 13 filing fee is now $313, consisting of a $235 filing fee and a $78 administrative fee.

The Chapter 11 filing fee remains at $1,738, which includes a $1,167 filing fee and a $571 administrative fee.

📈 Changes in Debt Limits

The Bankruptcy Threshold Adjustment and Technical Corrections Act expired in June 2024. This meant the debt limit for Subchapter V of Chapter 11 reverted from $7.5 million to $3,024,725. For Chapter 13, the eligibility thresholds were reinstated, allowing a maximum of $465,275 in unsecured debt and $1,395,875 in secured debt.

👨‍⚖️ New Trustee Compensation

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

⏳ Processing Times

Processing times for bankruptcy cases have not changed significantly. Chapter 7 cases typically take 3 to 6 months from filing to discharge. Chapter 13 cases can last 3 to 5 years, depending on the repayment plan. Meanwhile, Chapter 11 cases can vary widely, taking several months to years based on complexity.

📌 Key Points Summary

  • Chapter 7 fee: $338; Chapter 13 fee: $313; Chapter 11 fee: $1,738.
  • Debt limits for Subchapter V and Chapter 13 have reverted.
  • New trustee compensation structure in Chapter 7 cases.
  • Processing times for all chapters remain similar.
  • Check the original article for more detailed information.

💡 Tips for Navigating Bankruptcy

Reviewing your financial situation is essential. Discuss your specific circumstances with your attorney.

📝 Understand Your Eligibility

Know the means test for Chapter 7. Your income must be below the state median or pass a disposable income test to qualify.

📅 Complete Required Courses

Before and after filing, you must complete credit counseling and debtor education courses. These courses typically cost between $20 and $100 each.

📄 Prepare Necessary Documents

Ensure that all required documents, including your bankruptcy petition and schedules, are completed accurately. Missing documents can lead to delays in the process.

🏦 Know Your Exemptions

Understand the homestead exemption cap. Under federal law, equity protection in homes purchased within 1,215 days of filing is limited to $214,000.

⏰ Timely Completion of Steps

Complete your credit counseling within 180 days before filing. Also, ensure that you finish your debtor education before your discharge.

🏆 Bankruptcy Services Ranked by User Reviews (2026)

This section reviews services related to bankruptcy and credit repair. The order follows Trustpilot data as of October 2026. Ratings can change over time, and scores reflect only part of users' experiences.

Unhappy customers may post more reviews, which can affect overall scores.

🥇 1. CreditRepair.com

CreditRepair.com has been rated 1.2. It is known for offering credit repair services and debt management. However, it has numerous negative reviews, especially regarding customer service, which may raise concerns for potential users.

🥈 2. Lexington Law

Lexington Law holds a 3.2 rating. This company provides credit repair services and debt management. While it has mixed reviews, some users report issues with customer service, which might impact their overall satisfaction.

🆓 Free Government or Nonprofit Help

Several options are available for individuals seeking assistance. Legal aid organizations often provide free or low-cost help to those who qualify. The U.S. Trustee Program offers resources and information about bankruptcy procedures.

Additionally, credit counseling agencies approved by the U.S. Trustee Program can help with required counseling services.

🔎 What to Compare When Choosing a Service

  • ⚖️ Service reputation and Trustpilot score
  • 🏆 Range of services offered
  • 💰 Transparency in pricing and fees
  • 🗣️ Customer service quality and responsiveness
  • 📄 Availability of free resources or assistance

❓ 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 your income is lower, you may qualify for Chapter 7 relief.

📅 How long does the bankruptcy process take?

The bankruptcy process duration varies by chapter. Chapter 7 typically takes 3 to 6 months, while Chapter 13 can last 3 to 5 years. Chapter 11 cases may take months to years, depending on complexity.

🏦 What are the filing fees for bankruptcy?

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

📝 Are there exemptions in bankruptcy?

Yes, there are exemptions in bankruptcy. For instance, the homestead exemption cap limits equity protection in homes purchased within 1,215 days of filing to $214,000.

📈 Can I file for bankruptcy multiple times?

Yes, individuals can file for bankruptcy more than once. However, there are time limits on how often you can file. Consult your attorney for specifics based on your situation.

📚 What if creditors object to my discharge?

Creditors have 60 days after the 341 meeting to file objections to discharge. If objections are raised, your case may face delays or complications.

⚖️ Recent Court Rulings in Bankruptcy Cases

Recent court rulings provide insights into bankruptcy issues and their implications for individuals and businesses. These rulings can clarify how laws are applied in specific situations and help inform future cases.

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

End of October 2026 Update





The Fair Debt Collection Practices Act (FDCPA) is not exclusively a bankruptcy act, but even Congress recognized what is at stake if debt collectors are allowed to run amok, so to speak, in how they do their business. As spelled out in the original text of the FDCPA, instances of lenders using "abusive, deceptive and unfair debt collection practices" were all too common in the United States (and to an extent, still is). Moreover, the Act insists that efforts prior to its writing to curb these misdeeds of creditors were an "inadequate" source of protection for the American people, whose debt does not preclude their rights. 

Such is the stated purpose of the Fair Debt Collection Practices Act. What exactly did/does the FDCPA propose to change regarding the status quo? Along with its analysis of trends in business practices, the FDCPA also highlights some of the more obtrusive methods of collectors and labels them unlawful.

Among the actions of creditors' that the Act finds fault with include calling debtors at unreasonably early and late hours, calling them at work when it is not reasonable for them to answer the phone, calling neighbors and relatives and trying to go through them to get to debtors, using lies, deceit and false identities to prompt action by the borrower, or harassing/abusing debtors into submission.

Fair Debt Collection Practices Act

These answers, though, only further illuminate why there is the need for legislation regulating the practices of debtors. What does the FDCPA, in turn, propose borrowers who have been treated unfairly by their lenders do to rectify their situation?

The Fair Debt Collection Practices Act authoritatively enacts material consequences for creditors who overstep these bounds and authorizes debtors to file lawsuits if they felt they were dealt with improperly. Of course, collectors could prove that no malice was intended in their conduct, prompting dismissal of the case. If said collectors are found at fault, however, the debtor-plaintiff stands to be awarded up to $1,000 in damages as compensation for their creditor's poor judgment, along with additional coverage of court/attorney's fees.