How Much Does Bankruptcy Cost? Breaking Down Filing Fees & Costs

Bankruptcy costs can range from $400 to $3,000 or more. The total depends on your case complexity and bankruptcy type. Your financial situation also plays a major role.

If you qualify for fee waivers and file on your own, bankruptcy can be free. Without waivers, expect to pay at least $400 for basic costs.

Bankruptcy costs include:

• Court filing fees: $338 for Chapter 7 or $313 for Chapter 13
• Credit counseling course fees: $10-$50 per course
• Miscellaneous fees for printing and travel
• Attorney fees if you hire a lawyer

Filing bankruptcy gives you a fresh start. You can eliminate credit card debt, medical bills, and personal loans. Bankruptcy discharges most unsecured debts completely.

Note that bankruptcy rarely helps with student loans. You cannot discharge child support, alimony, or recent tax debt.

Bankruptcy Court Filing Fees

Your filing fee depends on which bankruptcy chapter you choose. Most people file either Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 Filing Fee

The Chapter 7 bankruptcy filing fee is $338 as of 2025. You must pay this when you file your petition.

The court may grant exceptions if you need help. You can request installment payments or apply for a fee waiver.

Paying Your Filing Fee in Installments

You can request an installment plan from the bankruptcy court. Filing immediately activates the automatic stay even if you haven’t paid the full fee.

The automatic stay stops debt collectors from contacting you. It halts wage garnishment and foreclosure proceedings immediately.

Fill out the installment application and submit it to the court. Each bankruptcy district sets its own minimum down payment.

You must pay all installments within 120 days after filing. Contact your local bankruptcy court clerk for specific requirements.

Getting a Fee Waiver

Fee waivers are available only for Chapter 7 cases. Your income must fall below 150% of the federal poverty line for your household size.

Being eligible doesn’t guarantee approval. If the court denies your waiver, you can usually pay in installments instead.

Fee waivers are not available for Chapter 13 bankruptcy. The court expects Chapter 13 filers to have disposable income for plan payments.

Chapter 13 Filing Fee

The Chapter 13 bankruptcy filing fee is $313. You cannot get a fee waiver for Chapter 13.

Chapter 13 requires you to make monthly plan payments to the trustee. If you can’t afford the filing fee, the judge will question your ability to maintain payments.

You can still apply to pay your filing fee in installments.

Credit Counseling Course Costs

Required bankruptcy courses cost $10-$50 total. You must take two educational courses to complete your bankruptcy.

Everyone who files must complete:

• A credit counseling course before filing
• A debtor education course after filing

Both courses apply to Chapter 7 and Chapter 13 cases. You can complete them online at your convenience.

Course providers cannot charge more than $50 per course. Most approved agencies operate as nonprofits.

If your income is below 150% of poverty guidelines, you can request a fee waiver. Contact your course provider directly to apply.

Expect to pay less than $25 for credit counseling. Debtor education usually costs less than $50.

Additional Bankruptcy Costs

Other costs arise during the bankruptcy process. Most are minor but worth considering.

Common additional expenses include:

• Printing costs for 60+ pages of paperwork
• Postage to mail documents to the court or trustee
• Amendment filing fees if you need to correct forms
• Travel expenses to attend your meeting of creditors
• Lost wages if you take time off work

Many people monitor their credit score during bankruptcy. You can get your credit report for free. Seeing your actual credit score may require payment.

Can You File Bankruptcy for Free?

You can get a fresh start through Chapter 7 without an attorney. Filing on your own keeps costs minimal.

Chapter 13 is much harder without legal help. Success rates for pro se Chapter 13 filers are very low. Hire an experienced bankruptcy attorney for Chapter 13 cases.

If you qualify for fee waivers and file Chapter 7 yourself, your only costs are course fees. You might even get those waived too.

Bankruptcy Attorney Fees

Attorney fees add significantly to bankruptcy costs. Lawyers typically charge $1,000-$2,000 for Chapter 7 cases.

Chapter 13 cases cost more because they’re more complex. These cases require a 3-5 year repayment plan. Attorneys charge higher fees for the extended commitment.

Flat Fees vs. Hourly Fees

Most bankruptcy attorneys charge a flat fee for Chapter 7. You pay a set amount upfront for all legal services.

Flat fees vary based on your case complexity. Simple cases cost less than complicated ones.

Hourly billing is rare for consumer bankruptcy. If your attorney charges hourly, get the rate in writing.

Attorney Payment Plans

Many bankruptcy lawyers offer payment plans for their fees. You can pay in installments like the filing fee.

Chapter 7 attorney fees must be paid in full before filing. The automatic stay prevents the lawyer from collecting after filing.

Chapter 13 allows more flexibility. You typically pay a portion upfront. The remaining attorney fees get paid through your repayment plan.

Chapter 13 Attorney Costs

Chapter 13 attorney fees are higher than Chapter 7. The workload is much greater for these cases.

Chapter 7 cases usually close within four months. Chapter 13 cases remain open for three to five years.

Paying Your Chapter 13 Attorney

You don’t need to pay all attorney fees upfront for Chapter 13. Most lawyers require a partial payment before filing.

Remaining fees get paid through your Chapter 13 plan. The trustee distributes plan payments to your attorney and creditors.

All attorney fees paid through the plan need court approval. Your lawyer submits a fee application for the judge’s review.

Outstanding attorney fees are part of your plan payment. They’re not additional to your monthly payment.

Lawyers can request priority status for their fees. Speak with a bankruptcy attorney to understand their payment structure.

Who Pays for Bankruptcies?

You pay your own bankruptcy filing fee. Chapter 7 costs $338 and Chapter 13 costs $313.

The filing fee covers the cost of operating the bankruptcy court system. Courts use these fees to process cases and maintain facilities.

If you earn less than 150% of the federal poverty line, you can request a fee waiver. The court covers the cost when your waiver is approved.

Fee waivers may also apply to required credit counseling courses. Each course normally costs $10-$50 per provider.

If you hire a lawyer, you’re responsible for those fees separately. Attorney fees are not covered by fee waivers.

Does the Government Pay for Bankruptcies?

The government doesn’t directly pay for most bankruptcies. Filers usually cover their own court filing fees.

The government absorbs costs in specific situations. Approved fee waivers mean the court system covers that person’s filing fee.

Fee waivers help ensure access to bankruptcy for low-income filers. The bankruptcy system remains available even when you can’t afford the fee.

Comparing Bankruptcy to Other Debt Relief Options

Bankruptcy is often more cost-effective than other debt relief options. Other methods may seem cheaper initially but cost more long-term.

Here’s how alternatives compare:

Debt Settlement

You negotiate to pay less than your full balance. Settlement companies charge up to 25% of the settled amount.

The process can take several years to complete. Forgiven debt may be taxed as income.

Settlement damages your credit while negotiations continue. You might still face lawsuits from creditors during this time.

Debt Management Plans

Credit counseling agencies negotiate lower interest rates for you. You make one monthly payment to the agency.

Plans typically last 3-5 years. You must repay your full debt amount plus interest.

Our partner Cambridge Credit Counseling offers affordable debt management plans. DMPs work well if you can afford reduced payments.

Chapter 7 bankruptcy may be cheaper if you can’t repay your debts. Most unsecured debts get completely discharged.

Debt Consolidation

You take out a new loan to combine multiple debts. Consolidation simplifies payments into one monthly bill.

You still repay the full loan amount with interest. Not everyone qualifies for favorable loan terms.

People with damaged credit often face high interest rates. Debt consolidation works best if you have good credit and steady income.