How to Qualify for Bankruptcy in 2026: Means Test, Limits, and How Often You Can File

April 27, 2026

How to Qualify for Bankruptcy in 2026: Means Test, Limits, and How Often You Can File

Last updated: October 14, 2026

Bankruptcy eligibility is set by federal law, and qualifying comes down to four tests: credit counseling within 180 days before filing, the means test for Chapter 7, the income and debt limits for Chapter 13, and the waiting periods that control how often a person can receive a discharge. A second Chapter 7 discharge is barred if the earlier Chapter 7 case was filed within 8 years of the new petition, under 11 U.S.C. 727(a)(8). Demand for the process is rising: U.S. Courts reported 608,511 bankruptcy filings in the 12 months ending June 30, 2026, up 12.2% from 542,529 a year earlier, and 581,570 of them were non-business cases.

Key Takeaways

With narrow exceptions, every individual filer must complete a briefing from an approved nonprofit budget and credit counseling agency during the 180 days before filing, under 11 U.S.C. 109(h).
Chapter 7 requires passing the means test in 11 U.S.C. 707(b), which starts by comparing your six-month average income with your state median income published by the U.S. Trustee Program.
Chapter 13 is limited to individuals with regular income whose debts are under $526,700 unsecured and $1,580,125 secured, for cases filed on or after April 1, 2025.
Filing fees total $338 for Chapter 7 and $313 for Chapter 13, per the U.S. Courts fee schedule effective December 1, 2023.
Waiting periods run from the filing date of the earlier case: 8 years from Chapter 7 to Chapter 7, 6 years from Chapter 13 to Chapter 7, 4 years from Chapter 7 to Chapter 13, and 2 years from Chapter 13 to Chapter 13.
A bankruptcy case of any chapter can be reported for up to 10 years from the order for relief, under the Fair Credit Reporting Act, 15 U.S.C. 1681c(a)(1).

Who Can File for Bankruptcy?

Who can file for bankruptcy is decided by 11 U.S.C. 109, which sets the baseline eligibility rules that apply before any chapter-specific test. An individual generally must reside, be domiciled, have a place of business, or hold property in the United States, and must meet the counseling and refiling rules below.

The counseling requirement is the first gate. Under 11 U.S.C. 109(h), an individual must receive a briefing from an approved nonprofit budget and credit counseling agency during the 180-day period ending on the date of filing. The briefing can be individual or group, and it can be completed by telephone or online. The U.S. Trustee Program approves these agencies under 11 U.S.C. 111, and it publishes the approved list by judicial district.

A second course comes after filing. To receive a discharge, a filer must also complete an instructional course in personal financial management, required by 11 U.S.C. 727(a)(11) in Chapter 7 and 11 U.S.C. 1328(g) in Chapter 13. Narrow exemptions exist for incapacity, disability, active military duty in a combat zone, and districts where the U.S. Trustee finds approved courses inadequate.

Recent dismissals can block a new case. Under 11 U.S.C. 109(g), a person cannot be a debtor if a prior case was pending in the preceding 180 days and was either dismissed for willful failure to obey court orders or appear, or voluntarily dismissed after a creditor asked for relief from the automatic stay. It is not a blanket 180-day bar; it applies only in those two situations.

What Is the Bankruptcy Means Test?

The bankruptcy means test is the income screen in 11 U.S.C. 707(b) that decides whether a Chapter 7 filing is presumed to be an abuse, and it is the main reason some higher earners are steered into Chapter 13. It runs in two stages.

Stage one compares income with the state median. Your current monthly income is the average monthly income from all sources, with some exclusions such as Social Security benefits, during the six full calendar months before filing, as defined in 11 U.S.C. 101(10A). That figure, multiplied by 12, is compared with the median income for a household of your size in your state, using tables the U.S. Trustee Program publishes on its means testing page. The current Census-based medians apply to cases filed on or after April 1, 2026, and the U.S. Trustee Program updates them periodically, so check the table that is in effect on the day you file. If your income is at or below the median, the presumption of abuse does not apply, although a case can still be challenged for bad faith under 11 U.S.C. 707(b)(3).

Stage two subtracts allowed expenses. If your income is above the median, the calculation deducts expenses set largely by IRS National and Local Standards, plus certain actual expenses, to find monthly disposable income. That amount is multiplied by 60 months. For cases filed on or after April 1, 2025, a presumption of abuse arises if the 60-month total is at least $17,150, or if it is at least $10,275 and also at least 25% of your nonpriority unsecured debt, under 11 U.S.C. 707(b)(2)(A)(i).

Failing the means test does not end the conversation. A filer can rebut the presumption by showing special circumstances, or can file under Chapter 13 instead. Means test math depends on household size, state, and expense documentation, so have a bankruptcy attorney run your actual numbers before relying on any estimate.

Who Qualifies for Chapter 13?

Chapter 13 is available to an individual with regular income whose debts fall under the limits in 11 U.S.C. 109(e). For cases filed on or after April 1, 2025, noncontingent, liquidated unsecured debts must be less than $526,700 and noncontingent, liquidated secured debts must be less than $1,580,125, per the Judicial Conference adjustment published in the Federal Register on February 4, 2025. The next scheduled adjustment is April 1, 2028.

The plan length follows income. Under 11 U.S.C. 1322(d) and 1325(b)(4), a filer whose income is below the state median generally proposes a three-year plan, which the court can extend for cause, and a filer at or above the median generally proposes a five-year plan. No plan can run longer than five years.

Chapter 13 is often used to keep a home. The plan can cure missed mortgage payments over time while the automatic stay in 11 U.S.C. 362(a) pauses most collection, including foreclosure, for as long as the stay remains in effect.

How Much Does It Cost to File for Bankruptcy?

Filing for bankruptcy costs $338 for Chapter 7 and $313 for Chapter 13 in court fees, per the U.S. Courts Bankruptcy Court Miscellaneous Fee Schedule effective December 1, 2023. The Chapter 7 total is a $245 filing fee, a $78 administrative fee, and a $15 trustee surcharge. The Chapter 13 total is a $235 filing fee and a $78 administrative fee.

Court fees are only part of the cost. Attorney fees, the two required courses, and the time needed to gather six months of income records add to it. U.S. Courts explains that filers can ask to pay the fee in installments, and that Chapter 7 filers with income below 150% of the poverty line who cannot pay in installments can ask the court to waive the fee, under 28 U.S.C. 1930(f).

How Many Times Can You File for Bankruptcy?

There is no lifetime limit on how many times a person can file for bankruptcy, but the Bankruptcy Code limits how often a filer can receive a discharge. Each waiting period is measured from the filing date of the earlier case to the filing date of the new case, not from the earlier discharge date.

Earlier case	New case	Waiting period for a new discharge	Statute
Chapter 7	Chapter 7	8 years	11 U.S.C. 727(a)(8)
Chapter 13	Chapter 7	6 years, unless the earlier plan paid 100% of allowed unsecured claims, or at least 70% under a good-faith, best-effort plan	11 U.S.C. 727(a)(9)
Chapter 7, 11, or 12	Chapter 13	4 years	11 U.S.C. 1328(f)(1)
Chapter 13	Chapter 13	2 years	11 U.S.C. 1328(f)(2)

Filing inside a waiting period is allowed, but no discharge issues at the end. Some filers still use a Chapter 13 case shortly after a Chapter 7 discharge to catch up on secured debt such as a mortgage, because the plan and the automatic stay can still help even without a second discharge. That strategy depends heavily on the facts and should be evaluated with a bankruptcy attorney.

What Happens If You Refile Within a Year?

Refiling within a year of a dismissed case weakens the automatic stay, the court order that pauses most collection the moment a case is filed. Under 11 U.S.C. 362(c)(3), if one prior case was pending and dismissed within the previous year, the stay terminates as to the debtor on the 30th day after the new case is filed unless the court extends it before then on a showing of good faith.

Two or more dismissals remove the stay entirely. Under 11 U.S.C. 362(c)(4), if two or more prior cases were pending and dismissed within the previous year, the automatic stay does not go into effect when the new case is filed unless the court orders it on a timely good-faith request. Neither rule counts a case dismissed under the means test in 11 U.S.C. 707(b) and refiled under a chapter other than Chapter 7.

The practical lesson is that a dismissed case is costly. A filer who loses a case for missed payments or missing paperwork can lose the full protection of the stay the next time, which is often the protection that made bankruptcy worth filing.

How Long Does Bankruptcy Stay on a Credit Report?

A bankruptcy can stay on a credit report for up to 10 years from the date of the order for relief, under the Fair Credit Reporting Act, 15 U.S.C. 1681c(a)(1). The statute sets the same 10-year maximum for every chapter, including Chapter 13.

The CFPB likewise states that a Chapter 7, 11, 12, or 13 bankruptcy can stay on a credit report up to 10 years. The 10-year limit also does not apply to reports used for credit or life insurance of $150,000 or more, or for a job paying $75,000 or more a year, under 15 U.S.C. 1681c(b). For the details on reporting and disputes, see our guide to how long bankruptcy stays on your credit report.

What Is the Worst Case If You File Without Qualifying?

The worst case is a filing that costs money and leaves a public record without delivering a discharge. A case filed inside a waiting period produces no discharge. A Chapter 7 case that fails the means test can be dismissed or, with the filer’s consent, converted. A case dismissed for willful failure to follow court orders can trigger the 180-day bar in 11 U.S.C. 109(g) and the shortened stay in 11 U.S.C. 362(c)(3) on the next attempt.

Disclosure errors carry the most serious risk. Bankruptcy petitions are signed under penalty of perjury, and knowingly concealing assets or making a false oath can lead to denial of a Chapter 7 discharge under 11 U.S.C. 727(a) and to federal criminal charges. Bankruptcy outcomes depend on your district and your specific facts, so confirm eligibility with a licensed bankruptcy attorney before filing.

What If Bankruptcy Is Not the Right Fit?

If you do not qualify, or if the waiting periods and the 10-year reporting window outweigh the benefit, the next step is to compare the non-bankruptcy options for unsecured debt. Our companion guide covers when to consider bankruptcy and the alternatives to compare first.

United Debt Relief offers three programs that people often compare with bankruptcy. Debt Validation helps you request that a debt collector verify a debt under the Fair Debt Collection Practices Act. Debt Settlement negotiates with creditors to try to resolve unsecured balances for less than the amount owed, and debt settlement carries no upfront fees. Debt Consolidation Loans can combine balances into one monthly payment for people whose credit and income qualify. Results vary by situation, and no program is right for everyone.

Frequently Asked Questions

How many times can you file for bankruptcy?

There is no lifetime limit on filings, but a new discharge is barred within set waiting periods measured from the filing date of the earlier case: 8 years from Chapter 7 to Chapter 7, 6 years from Chapter 13 to Chapter 7, 4 years from Chapter 7 to Chapter 13, and 2 years from Chapter 13 to Chapter 13, under 11 U.S.C. 727(a) and 1328(f).

What is the bankruptcy means test?

The means test in 11 U.S.C. 707(b) compares your average income over the six months before filing with your state median for your household size. If your income is above the median, allowed expenses are subtracted to decide whether a Chapter 7 filing is presumed to be an abuse.

What are the Chapter 13 debt limits in 2026?

For cases filed on or after April 1, 2025, Chapter 13 is limited to individuals with regular income whose unsecured debts are under $526,700 and whose secured debts are under $1,580,125, under 11 U.S.C. 109(e). The next adjustment is scheduled for April 1, 2028.

How much does it cost to file for bankruptcy?

Court fees total $338 for Chapter 7 and $313 for Chapter 13, per the U.S. Courts fee schedule effective December 1, 2023. Attorney fees and the two required courses are separate costs.

Do you have to take a course before filing for bankruptcy?

Yes. An individual must complete a briefing from an approved nonprofit budget and credit counseling agency within 180 days before filing, under 11 U.S.C. 109(h), and must complete a personal financial management course after filing to receive a discharge.

How long does bankruptcy stay on your credit report?

The Fair Credit Reporting Act allows a bankruptcy of any chapter to be reported for up to 10 years from the order for relief, under 15 U.S.C. 1681c(a)(1). The statute does not set a shorter period for Chapter 13.

Comparing bankruptcy with other options? Call United Debt Relief at 1 (888) 802-2092 or request a free consultation. All 50 states. Debt settlement carries no upfront fees. Results vary by situation. This article is general information, not legal advice.