How Much Does Bankruptcy Cost?

Understanding fees, attorney costs, and payment options

Total Bankruptcy Costs

Chapter 7: $1,300 to $3,000 total (attorney fees + court costs)
Chapter 13: $3,300 to $5,500 total (often paid through your repayment plan)
Most attorneys offer payment plans, and fee waivers are available for those with very low income.

Breakdown of Bankruptcy Costs

Chapter 7 Bankruptcy Costs

Fee Component	Typical Cost	Required?
Attorney Fees	$1,000 - $2,500	Recommended
Court Filing Fee	$338	Yes
Credit Counseling	$25 - $50	Yes
Debtor Education Course	$25 - $50	Yes
Credit Reports	$0 - $50	Recommended
Total	$1,388 - $2,988

Chapter 13 Bankruptcy Costs

Fee Component	Typical Cost	Payment Method
Attorney Fees	$3,000 - $5,000	Paid through plan
Court Filing Fee	$313	Paid through plan
Credit Counseling	$25 - $50	Upfront
Debtor Education Course	$25 - $50	Upfront
Trustee Fees	~10% of payments	Deducted from plan payments
Total	$3,363 - $5,413+

Attorney Fees by Location

Bankruptcy attorney fees vary significantly based on location and case complexity:

Chapter 7 Attorney Fees by Region

Location	Typical Fee Range
Major Cities (NY, LA, SF, Chicago)	$1,500 - $2,500
Mid-Size Cities	$1,200 - $1,800
Suburban Areas	$1,000 - $1,500
Rural Areas	$900 - $1,300

What Affects Attorney Fees

Geographic location: Higher cost of living = higher attorney fees
Case complexity: Simple no-asset case vs. business ownership
Attorney experience: Specialized bankruptcy attorneys may charge more
Competition: More bankruptcy attorneys in area = competitive pricing
Additional services: Emergency filings or adversary proceedings cost extra

Court Filing Fees

Current Filing Fees (2026)

Chapter 7: $338 total ($245 case filing fee + $78 administrative fee + $15 trustee surcharge)
Chapter 13: $313 total ($235 case filing fee + $78 administrative fee)
Chapter 11 (business): $1,738 (most individuals don't file Chapter 11)

Fee Payment Options

Pay in Installments

You can request to pay the filing fee in up to 4 installments over 120 days if you cannot afford to pay it all at once. Requirements:

File an Application to Pay Filing Fee in Installments with your petition
Cannot make any payment to the attorney while installments are pending
Must make first installment within 30 days of filing
All installments must be paid within 120 days

Fee Waiver (Chapter 7 Only)

You may qualify to have the entire $338 filing fee waived if:

Your household income is less than 150% of the federal poverty level, AND
You cannot pay the fee in installments

2026 Poverty Guidelines for Fee Waiver:

Household Size	150% of Poverty Level (Annual)
1 person	$21,870
2 people	$29,580
3 people	$37,290
4 people	$45,000

Note: Chapter 13 does not allow fee waivers, but the filing fee can be paid through your repayment plan.

Required Course Fees

Credit Counseling (Pre-Filing)

Before filing bankruptcy, you must complete credit counseling from an approved agency:

Cost: $25 - $50 (fee waivers available for low income)
When: Within 180 days before filing
Duration: About 1 hour
Format: Online, phone, or in-person
Requirement: Must file certificate with bankruptcy petition

Debtor Education Course (Post-Filing)

After filing but before discharge, you must complete a debtor education course:

Cost: $25 - $50 (fee waivers available for low income)
When: After 341 meeting, before discharge
Duration: About 2 hours
Format: Online, phone, or in-person
Requirement: Must file certificate or discharge won't be granted

Finding Approved Agencies: Visit justice.gov/ust to find approved credit counseling and debtor education agencies in your area.

Attorney Payment Plans

Most bankruptcy attorneys understand that people filing bankruptcy don't have extra money, so they offer flexible payment options:

Typical Chapter 7 Payment Plans

Down payment: $200 - $500
Monthly payments: $100 - $300
Payment period: 3-6 months before filing
Requirement: Must pay all attorney fees before filing Chapter 7

Example: Chapter 7 Payment Plan

Total attorney fee: $1,500
Down payment: $300
Remaining: $1,200
Monthly payments: $200 × 6 months
Timeline: File after all fees paid (month 7)

Chapter 13 Payment Structure

Chapter 13 attorney fees are usually paid through your repayment plan:

Down payment: $200 - $500 (to get case filed)
Remaining fees: Paid through your Chapter 13 plan over 3-5 years
Court approval: Attorney fees must be approved by the court
Advantage: Minimal upfront cost to file

Example: Chapter 13 Payment Structure

Total attorney fee: $4,000
Down payment to file: $300
Paid through plan: $3,700
Your monthly plan payment: $500 (includes attorney fee, trustee fee, and debt repayment)
Attorney portion: Approximately $60-100/month until paid

Hidden or Additional Costs

Be aware of potential additional costs:

Common Additional Fees

Credit reports: $30 - $50 (some attorneys include this)
Document copies: $0.10 - $0.25 per page for court copies
Notary fees: $5 - $15 (if documents need notarization)
Certified mail: $5 - $10 per creditor (some courts require this)
Amendment fees: $30 - $100 if you need to amend your petition after filing

Services That Cost Extra

Emergency filing: $200 - $500 additional (to file within 24-48 hours)
Adversary proceeding: $2,000 - $5,000+ (lawsuit within bankruptcy, like student loan discharge)
Reopening case: $260 filing fee + attorney fees if your case is closed and needs reopening
Converting cases: Additional fees if converting from Chapter 7 to 13 or vice versa
Business bankruptcy: Significantly higher fees ($3,000 - $10,000+)

Can You Afford NOT to File Bankruptcy?

While bankruptcy costs money upfront, consider what you're currently paying:

Cost Comparison: Bankruptcy vs. Minimum Payments

Your current situation (example):
Credit card payments: $600/month
Medical bill payments: $200/month
Personal loan: $150/month
Total monthly: $950
Annual cost: $11,400
Time to pay off: 7-10 years
Total cost with interest: $80,000 - $100,000+

Chapter 7 bankruptcy:
One-time cost: $1,500
Debt eliminated: 3-4 months
Savings: $78,500 - $98,500

Break-even analysis: If bankruptcy costs $1,500 and you're paying $950/month on debt, bankruptcy pays for itself in less than 2 months of avoided payments.

Free or Low-Cost Bankruptcy Help

Legal Aid Organizations

Free bankruptcy assistance may be available through:

Legal Aid Societies: Free legal help for low-income individuals
Law School Clinics: Law students supervised by professors provide free help
Pro Bono Programs: Volunteer attorneys provide free representation
Requirement: Usually must meet income guidelines (below 125-200% of poverty)

Reduced-Fee Programs

Modest Means Programs: Reduced-fee representation for those who don't qualify for free help
Unbundled Services: Pay attorney for specific help (advice, form review) rather than full representation
Sliding Scale Fees: Some attorneys adjust fees based on income

Is Bankruptcy Worth the Cost?

Consider bankruptcy if:

Total debt exceeds 40% of annual income
Minimum payments consume more than 20% of take-home pay
You're being sued or garnished
You can't see a path to being debt-free in 5 years
Debt is affecting your health or relationships

How to Find Affordable Bankruptcy Help

Step 1: Get Free Consultations

Most bankruptcy attorneys offer free initial consultations. Meet with 2-3 attorneys to:

Compare fees and payment plans
Assess experience and communication style
Understand what's included in the fee
Get honest assessment of your situation

Step 2: Ask About Payment Plans

Questions to ask about fees:

"What is your total fee and what does it include?"
"Do you offer payment plans?"
"What's the minimum down payment to get started?"
"Are there any additional costs I should expect?"
"Do you charge extra for emergency filings?"

Step 3: Explore Legal Aid

Contact local legal aid organizations if you have very low income. Find organizations at:

LawHelp.org
Legal Services Corporation (LSC.gov)
Your state bar association website
Local law schools

Step 4: Consider Timing

If you can save for a few months before filing:

Stop paying unsecured creditors (credit cards, medical bills)
Use that money to save for bankruptcy fees
File bankruptcy before creditors sue or garnish
Most people can save bankruptcy fees in 2-4 months this way

Frequently Asked Questions

Can I include attorney fees in my bankruptcy?

No. In Chapter 7, you must pay all attorney fees before filing. In Chapter 13, you can pay most attorney fees through your plan, but you'll need a down payment to file the case.

Why do attorneys require payment before filing Chapter 7?

Once you file Chapter 7, your debts are discharged - including any unpaid attorney fees. Attorneys must collect their fees before filing because they can't collect afterward.

Are expensive attorneys better?

Not necessarily. Higher fees may reflect location (expensive cities) rather than quality. Choose based on experience, reviews, communication, and comfort level, not just price.

Can I negotiate attorney fees?

Sometimes. Attorneys in competitive markets may negotiate, especially if you have a simple case. However, most bankruptcy attorneys already price competitively due to their client base.

What if I can't afford bankruptcy?

Options include: payment plans (most common), legal aid (if you qualify), pro bono representation, saving for a few months while not paying creditors, or Chapter 13 (lower upfront cost).

Get Free Fee Quotes

Contact bankruptcy attorneys for free consultations and compare fees and payment plans in your area.

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