How much does it cost to file bankruptcy?
How much does it cost to file bankruptcy?
$313 – $338 filing fee
$600 – $4,000 average attorney fees
Average cost to file bankruptcy
Filing for bankruptcy costs $338 for Chapter 7 or $313 for a Chapter 13 declaration. These fees are set by the federal government and are the same regardless of your location. If you hire a lawyer to help with your case, you’ll pay $600 to $4,000 in bankruptcy attorney fees on average.
| Fee type | Average cost |
|---|---|
| Filing fees | $313 – $338 |
| Attorney fees | $600 – $4,000 |
If your income is less than 150% of the federal poverty level, the court can either waive your filing fee or arrange for you to pay it in installments.
Cost of filing for bankruptcy by type
The federal government sets the fees for filing for bankruptcy, and the fee depends on which type of bankruptcy you need. Chapter 7 can be cheaper in the long run because you only have to pay the value of some of your assets. However, Chapter 13 stays on your credit report for a shorter time.
Chapter 7 and 13 are the only bankruptcy types available to individuals, and both types discharge unsecured debt like personal loans, credit cards, and medical bills. Chapter 9 and 11 bankruptcies are for businesses or municipalities. Chapter 12 applies specifically to family farms or fishing businesses.
| Bankruptcy type | Filing fee* |
|---|---|
| Chapter 7 | $338 |
| Chapter 13 | $313 |
*Not including ay attorney fees
Chapter 7 bankruptcy
Filing fees for Chapter 7 bankruptcy are $338, not including attorney fees. This type of bankruptcy involves liquidating your assets to pay off as much of your debt as possible. You can file for Chapter 7 if you make less per month than your state’s median income or if your debt is greater than $9,075.
Thankfully, you don’t have to sell or give up everything you own to pay off your debts. The following assets are exempt from Chapter 7 filings:
Alimony or child support
Wages from after you file
Your pension
Any 401(k) or retirement plans, up to $1 million
Your vehicle, in some cases
Household goods, furniture, clothing, appliances, etc.
The equity in your house (if it’s your primary residence)
Social Security, unemployment, disability, or veterans’ benefits
Chapter 13 bankruptcy
Filing fees for Chapter 13 bankruptcy are $313, not including attorney fees. This type of bankruptcy is also called a “wage earner’s plan” and involves making a 3- to 5-year plan to pay off debts instead of liquidating your assets. Chapter 13 is essentially a court-ordered budget that can be hard to stick to.
Chapter 13 bankruptcy is useful if you’re behind on mortgage payments and don’t want to lose your home. Chapter 7 can put a foreclosure on hold but won’t necessarily prevent it.
If you’re filing for Chapter 13 bankruptcy, you can include your attorney fees in your payment plan.
What impacts the cost of filing bankruptcy?
The following factors may influence the fees and costs to file for bankruptcy:
Attorney fees: If you need help filing your paperwork, lawyers charge $150 to $400 per hour on average. Bankruptcy attorneys charge a $600 to $4,000 flat rate, depending on the type. Chapter 13 cases tend to cost more than Chapter 7.
Credit counseling: All bankruptcy filers must go through credit counseling within 180 days before filing. This service costs anywhere from $0 to $50 per month and may help you avoid bankruptcy when possible.
Debt type: Some debts are non-dischargeable and will not go away even after bankruptcy. These include child support, alimony, taxes, and most student loans.
Location: Lawyers in highly populated areas like New York, California, or Washington D.C. typically charge more than in smaller towns or less-populated states.
Income: Your case may be more complex if you have multiple sources of income or are also filing for a business bankruptcy at the same time.
Bankruptcy FAQs
What is bankruptcy?
Bankruptcy is a legal process that helps people get out of debt, pay off their creditors, and get a fresh start financially. Filers must either sell some of their assets to pay off as much debt as possible or keep their assets and stick to a strict, court-ordered payment plan.
What happens when you file for bankruptcy?
When you file for bankruptcy, it will show up on your credit report. Chapter 7 bankruptcies stay on your credit report for up to 10 years. Chapter 13 bankruptcies stay for up to 7 years, but your score could still rise before then if you make car or house payments on time.
Your credit score will drop by 150 to 250 points, and your approval odds for a house, car, apartment, loan, or credit card will be lower.
Can I file bankruptcy without a lawyer?
You can file bankruptcy without a lawyer—also called filing pro se—but your case is more likely to go well with one. Lawyers have the experience necessary to file your paperwork quickly and accurately. They can also help you decide which type of bankruptcy is best for you or help avoid it altogether.
When would I need a bankruptcy lawyer?
People get in over their heads with debt and file for bankruptcy for many different reasons. This could include:
Divorce
Medical bills
Credit card debt
Unexpected emergencies
Long-term unemployment
How long do bankruptcy cases take?
Chapter 7 bankruptcy cases normally take about 4 to 6 months, as long as there are no major delays or mistakes in the paperwork. Selling property to pay off debt can sometimes delay cases. Chapter 13 cases take 3 to 5 years because they are contingent upon the court-ordered payment plan.
How to choose a bankruptcy lawyer
If you need help starting the bankruptcy process, start by searching our list of bankruptcy lawyers and then follow these steps:
Compare 3+ estimates from different lawyers who specialize in bankruptcy cases.
Read reviews on Lawful and Google.
Choose an experienced lawyer with a good reputation.
Verify they passed the bar and can represent you in court.
Choose a lawyer who makes you feel comfortable and at ease.
Get a written contract before they begin any casework.
Questions to ask a bankruptcy lawyer
When looking for a bankruptcy lawyer, ask the following questions:
How long have you been practicing law?
When did you pass the bar?
How much experience do you have filing for bankruptcy on behalf of clients?
Do you give free consultations?
Can you take on new clients at this time?
Do you charge by the hour or charge a flat rate?
Will you give me a contract in writing?
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.