How much does a bankruptcy lawyer cost?
How much does a bankruptcy lawyer cost?
$600 – $2,500 average fee (Chapter 7 bankruptcy)
$2,000 – $4,000 average fee (Chapter 13 bankruptcy)
Average bankruptcy lawyer price
A bankruptcy lawyer costs $600 to $2,500 on average for Chapter 7 bankruptcy and $2,000 to $4,000 or more for Chapter 13. The total cost to hire a bankruptcy attorney depends on their experience level, your location, and how complex your case is. Filing fees alone cost $313 to 338.
| Bankruptcy type | Average cost |
|---|---|
| Chapter 7 | $600 – $2,500 |
| Chapter 13 | $2,000 – $4,000 |
Chapter 7 and 13 are the two types of bankruptcy available to individuals. Chapter 7 can be cheaper in the long term but stays on your credit report longer.
Both bankruptcy types help you discharge unsecured debt like personal loans, credit card debt, or medical bills.
Chapter 9 and 11 bankruptcies are for businesses or municipalities, and Chapter 12 is for family farms or fishing businesses.
Chapter 7
Bankruptcy attorneys charge $600 to $2,500 for Chapter 7 bankruptcy cases. During a Chapter 7 bankruptcy, you liquidate your assets and pay off as much of your debt as possible. You can only file for Chapter 7 if you make less than your state’s median income or your debt is over $9,075.
You don’t have to sell or surrender everything to pay off your debts. These assets are usually exempt from Chapter 7 filings:
Child support and alimony
Wages you earn after filing
Your pension, if you have one
Your vehicle (in some cases)
Any 401(k) or retirement plans (up to $1 million)
Furniture, clothing, appliances, and other household goods
Your house’s equity (if it’s your primary residence)
Benefits like Social Security, unemployment, disability, or veterans’ benefits
Chapter 13
Bankruptcy attorneys charge $2,000 to $4,000 for Chapter 13 bankruptcy cases. This bankruptcy type is also known as a “wage earner’s plan” and includes making a 3- to 5-year payment plan instead of liquidating assets. Chapter 13 is essentially a strict court-ordered budget.
Chapter 13 bankruptcy is helpful if you’re in danger of foreclosure and don’t want to lose your home. Chapter 7, on the other hand, can delay a foreclosure but can’t always prevent it.
You may be able to include your lawyer’s fees in a Chapter 13 payment plan.
Bankruptcy attorney cost factors
The following factors may influence the cost to hire an attorney to help you file for bankruptcy:
Filing fees: On top of attorney fees, filing for bankruptcy costs $313 to $338 in court fees alone. You may be able to waive this fee or pay it in installments if your income is below a certain amount.
Experience: Lawyers with more experience and stellar reputations tend to charge more. A low-cost bankruptcy attorney may charge less but may not handle your case with the same level of care.
Credit counseling: Anyone considering filing for bankruptcy must go through credit counseling within 180 days before filing. This costs $0 to $50 per month and can help you avoid bankruptcy altogether if possible.
Type of debt: Some debts are non-dischargeable, which means they won’t go away even after declaring bankruptcy. Non-dischargeable debts include alimony, child support, taxes, and most student loans.
Location: Lawyers in areas like New York, California, or Washington D.C. usually charge more than those in small districts or less-populated states.
Income: If you have multiple sources of income or are also filing for a business bankruptcy, your case will be more complicated and may cost more.
Bankruptcy lawyer FAQs
Can I file bankruptcy without a lawyer?
You’re allowed to file bankruptcy pro se or without a lawyer, but you’re more likely to have a favorable outcome with one. Attorneys can file your paperwork accurately and quickly, avoiding delays. They can also help you decide which type of bankruptcy is best or find a way to avoid it.
When would I need a bankruptcy attorney?
There are many different reasons people accumulate unmanageable debt and hire a lawyer to help them file for bankruptcy. These reasons include:
Divorce
Medical bills
Unemployment
Unforeseen emergencies
Consumer credit card debt
What happens when you file for bankruptcy?
After you declare bankruptcy, it will stay on your credit report for 7 to 10 years. Your credit score will most likely drop by 150 to 250 points, which means you’re less likely to get approved for a house, car, apartment, loan, or credit card.
A Chapter 7 bankruptcy will stay on your credit report for up to 10 years before falling off. A Chapter 13 bankruptcy only stays for up to 7 years, but your score could rise before then if you make your payments on time.
How long do bankruptcy cases take?
A Chapter 7 bankruptcy case usually takes about 4 to 6 months, as long as there are no mistakes in the paperwork or major delays. If you have to sell property to pay off debt, it may cause a delay.
Chapter 13 cases take about 3 to 5 years, depending on the length of your court-ordered payment plan.
How to choose a bankruptcy lawyer
If you need help with the bankruptcy process, start by searching our list of bankruptcy lawyers. Meet with them in person to get a feel for them and follow these steps:
Compare 3 or more estimates from different law firms.
Read client reviews on Lawful and Google.
Choose an experienced attorney with a good reputation.
Verify they’ve passed the bar and are qualified to represent you in court.
Choose an attorney who makes you feel calm and secure.
Get a contract in writing before they begin any casework.
Questions to ask a bankruptcy lawyer
When looking for a bankruptcy attorney, ask these questions:
How much experience do you have with bankruptcy cases?
How long have you been filing for bankruptcy on behalf of clients?
How long do cases like mine usually take?
How long ago did you pass the bar?
Do you give free consultations?
Can you take on new clients right now?
Can you recommend any credit counseling services?
Do you charge an hourly rate or a flat rate?
Can you give me a contract in writing before we start?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.