How much does it cost to file bankruptcy?

Filing for bankruptcy can eliminate or reduce your debt and provide relief from creditors. While it can be a fresh start, filing for bankruptcy comes with costs, depending on the size, type and complexity of your debt.

Filing Chapter 7 bankruptcy typically costs between $1,800 and $2,300 while a Chapter 13 filing can cost between $4,500 and $5,300.

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Common types of bankruptcy

There are six types of bankruptcies, but the most common ones that individuals file are Chapter 7 and Chapter 13.

Chapter 7 liquidation bankruptcy is available to individuals who, based on their income, can’t possibly pay their existing debt obligations. Your assets, which can include your home, are sold to pay off as much of your debt as possible before the rest is discharged.

In contrast, Chapter 13 reorganization bankruptcy typically allows you to keep assets, like your home and vehicle, while paying back creditors over a three-to-five year period. It’s available to individuals with a steady income who can make monthly payments according to the terms of a court-approved plan.

Best for fast payoff

Accredited Debt Relief

State availability

30 states and Washington, D.C.

Fees

Typically 15% to 25% of enrolled debt amount (success-based)

Learn More

Via Accredited Debt Relief's website

State availability

30 states and Washington, D.C.

Fees

Typically 15% to 25% of enrolled debt amount (success-based)

What you should know

Many debt management plans are designed to be completed within three to five years. However, Accredited Debt Relief’s clients typically pay off their debts in as little as one to two years, depending on their financial situation.

This company’s fees are also success based, meaning you’ll only pay if you receive a solution to your debt. Note that these fees are generally 15% to 25% of the enrolled debt amount — not the amount saved as part of the debt management process. For example, if your enrolled debt was $15,000, your fees could range from $2,250 to $3,750. Additionally, fees can vary depending on your state and total amount of debt.

Keep in mind that Accredited Debt Relief’s products are only available in the following states:

• AL
• AK
• AZ
• CA
• CO
• DC
• FL
• ID
• IN
• KY
• LA
• MD
• MA
• MI
• MS
• MO
• MT
• NE
• NV
• NM
• NY
• NC
• OK
• PA
• SD
• TN
• TX
• UT
• VA
• WI

Pros and cons

Pros

• Helps clients pay off debt in as little as 1 to 2 years.
• Charges success-based fees.
• Excellent Trustpilot reviews.

Cons

• Fees based on the amount of debt you enroll, not how much you save.
• Fees can be high, depending on how much debt you enroll.
• Not available in every state.

More details

• Type of company: For-profit.
• State availability: Available in 30 states and Washington, D.C.
• Fees: 15% to 25% of enrolled debt amount (success-based).
• Offers a free consultation? Yes.
• Offers a money-back guarantee? Yes (charges success-based fees).

How much does it cost to file for bankruptcy?

Filing for bankruptcy can be expensive and time consuming, which often makes it a last resort for dealing with debt. Some bankruptcy costs are unavoidable, like filing fees and administrative fees. Other fees are more subjective, depending on if you pay for professional help. There are both upfront and long-term costs to filing for bankruptcy.

Each bankruptcy comes with its own costs depending on its type and its complexity, as well as how much debt is being discharged in the process.

Upfront costs to expect

Credit counseling: $0

Before filing for bankruptcy, you are legally required to get credit counseling, which provides money management education and can help you create a plan to pay down your debts.

All nonprofit credit counseling agencies offer a free initial session. You can use one of these sites to find an agency near you:

• National Foundation for Credit Counseling.
• Council of Accreditation (COA).
• Financial Counseling Association of America.

Note that there are fees if you select to use a service, like a debt management plan.

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Court fees: $313 to $338

While it may feel odd to pay fees to tell the courts you don’t have enough money, you typically have to pay court fees to file for bankruptcy. The filing fee for a Chapter 7 bankruptcy is $338, while the filing fee for a Chapter 13 bankruptcy is $313.

“In some cases, you may be able to waive the filing fee or pay in installments for Chapter 7 bankruptcy,” said Alan Hochheiser, a bankruptcy lawyer and partner at Maurice Wutscher, a national law firm.

For both Chapter 7 and Chapter 13, you could elect to pay the court fees in four installments. However, for Chapter 13 bankruptcy, no waiver is available and you are required to pay the fee in full.

Attorney fees: $1,500 to $5,000

If you hire an attorney to help with your case, you’ll need to pay for their services. “Costs can vary widely based on how complicated your case is and where you live, but most bankruptcy attorneys charge a flat fee,” said Hochheiser.

Total attorney fees for Chapter 7 bankruptcy typically range between $1,500 and $3,000, while the average national presumptive base fee for Chapter 13 is $3,888. Keep in mind this is a national average and the cost can be higher in some places. For example, the Chapter 13 attorney’s fee guideline in Nevada is set at $5,000.

There may be additional fees for making legal motions and contesting confirmations, which typically cost around $500 each, although they’re rather rare.

“With Chapter 7 bankruptcy, most of the work is done up front and the entire case is wrapped up pretty quickly, so it’s a lot less total work on the attorney’s part,” said Edward Boltz, director at the National Association of Consumer Bankruptcy Attorneys, who explains why Chapter 7 bankruptcies have a lower average cost for lawyer fees.

“But you typically have to pay your attorney fees upfront because these fees can be considered unsecured debt and discharged,” said Boltz.

Still, paying something upfront doesn’t mean all at once. Chapter 13 bankruptcy cases can last years and attorney fees are often paid over a period of time.

Chapter 13 trustee commission: Around 10% of your debt

As part of a Chapter 13 payment plan, you’ll also work with a trustee who’ll distribute payments, manage plan modifications and act as a representative. The trustee is usually paid in commission, up to 10% of each monthly payment.

Long-term costs to expect

While filing for bankruptcy can provide financial relief, it can have long-term impact on your life. It can severely affect your credit score, dropping it by 150 points or more, depending on what your score was.

Landlords and employers will often check your credit score as part of your application — having a lower credit score can hurt your chances of getting accepted.

It can also be difficult and more expensive to get financing.

For example, imagine you want a six-year (72-month) auto loan to finance $30,000 for a new car. In this case, having a credit score of 500 rather than 780 would cost you $9,854 over the life of the loan.

CREDIT SCORE	AVERAGE APR	MONTHLY PAYMENT	TOTAL INTEREST PAID
Super-prime (781-850)	5.18%	$486	$4,967
Prime (661-780)	6.40%	$503	$6,207
Near-prime (601-660)	8.86%	$539	$8,785
Subprime (501-600)	11.53%	$579	$11,702
Deep subprime (300-500)	14.08%	$619	$14,601

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^{Rates from Experian’s State of the Automotive Finance Market Q1 2023.}

Bankruptcy may seem like a fresh start, but you should be careful to avoid debt and rebuild your credit over time so you don’t wind up back at square one. 

How to pay bankruptcy fees

Paying for the upfront bankruptcy fees can be difficult if you’re already struggling to make ends meet. Here are a few ways to handle your bankruptcy fees:

• Apply for a Chapter 7 fee waiver.
• Apply to pay filing fees in installments. 
• Look up nonprofit organizations that provide grants and other types of legal assistance, including your local Legal Aid Society and Upsolve.

You can also check out the website of your local bankruptcy court for further resources.

While it may seem tempting to file bankruptcy alone and forgo the lawyer fees, it’s not recommended. Bankruptcy is a complicated process and you may not be aware of everything you need to disclose or provide, leading to your case getting dismissed and, in the worst case, possibly earning you a criminal charge.

Pros and cons to filing for bankruptcy

Filing for bankruptcy can offer you a fresh start financially, allowing you to discharge certain debts. This could give you more financial freedom moving forward and empower you to build smarter financial habits.

In the short term, it may also prevent creditors from taking (further) legal action against you.

However, there are some downsides to filing for bankruptcy. Bankruptcy can adversely affect your ability to get credit cards or loans in the future. Additionally, some debts such as student loan debt almost never qualify to be discharged, which means you may still face outstanding debts, even after filing for bankruptcy protection.

While there are definite costs associated with filing a bankruptcy case, it may be worth it in exchange for relieving your debt. It’s important to do thorough research and consult a qualified professional before making any decisions, so you understand exactly what you’re getting into when potentially filing for bankruptcy.

Frequently asked questions (FAQs)