How much does bankruptcy cost, and how do you find help
It’s a frustrating situation to find yourself in. You might need bankruptcy because you're out of money, but filing costs money too. The good news is that the costs are usually lower than people expect, and there are real ways to cut them, including free help.
Key takeaways
- The court filing fee is $338 for Chapter 7 and $313 for Chapter 13.
- If your income is low, you can ask the court to waive the Chapter 7 fee or let you pay it in installments.
- Attorney fees vary a lot, often about $1,000 to $2,500 for a simple Chapter 7 case.
- Legal aid offices, law school clinics, and some nonprofits offer free or low-cost bankruptcy help.
You’ll need to be aware of three bankruptcy costs: court fees, two required courses, and legal help. Here's what to expect for each.
Court filing fees
The fees are set by federal law and are the same in every state:
- Chapter 7: $338
- Chapter 13: $313
Can't afford it? If your household income is less than 150% of the federal poverty guidelines and you can't pay in installments, you can ask the court to waive the Chapter 7 fee (this isn’t possible for Chapter 13).
If you don't qualify for a waiver, you can ask to pay the fee in up to four installments within 120 days of filing. However, if you miss the final payment, your case could be dismissed.
Required courses
Everyone who files has to take two short courses from providers approved by the U.S. Trustee Program.
- Credit counseling has to be completed within 180 days before you file. It reviews your budget and alternatives to bankruptcy.
- Debtor education comes after you file and before your debts are erased. It covers budgeting and managing money going forward.
Each course usually costs about $10 to $50 and can be taken online or by phone. Providers have to offer reduced or free courses if you can't afford them, so ask.
Attorney fees
This is the biggest cost, and it varies by location and how complicated your case is.
- Chapter 7: Often $1,000 to $2,500 for a basic case. Most attorneys want this paid in full before they file.
- Chapter 13: Often $2,500 to $5,000 or more. The upside is that you usually pay a small amount upfront and the rest through your repayment plan.
Many attorneys offer a free first consultation. Use it to ask what's included in the fee and whether they offer payment plans.
Is a lawyer worth it?
Bankruptcy forms are complex, and small mistakes can have big consequences. You could lose property you could have protected, leave a debt behind, or have your case dismissed. An experienced attorney knows your local court, your state's exemptions, and how to time your filing. For Chapter 13, a lawyer is close to essential.
Free and low-cost help
If you can't afford an attorney, start here:
- Legal aid offices: Nonprofit legal aid groups help low-income people with civil legal problems, and many handle bankruptcy. Search for your local office at LawHelp.org.
- Law school clinics: Some law schools run bankruptcy clinics where students help clients for free (supervised by licensed attorneys).
- Bar association programs: Your state or local bar association may run pro bono programs or lawyer referral services with low-cost first meetings.
- Court self-help resources: Many bankruptcy courts offer self-help centers and help desks for people filing without a lawyer.
- Nonprofit filing tools: Upsolve, a nonprofit, offers a free online tool for simple Chapter 7 cases. It's generally for people with income below their state's median who don't own a home.
What about filing on your own?
Filing without a lawyer is legal, and it can work for a simple Chapter 7 case with low income and not many assets. Bankruptcy petition preparers can type your forms for a fee, but they aren't lawyers and can't give you legal advice.
What this is
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Sources
Related FAQs
Common questions about this topic, answered simply.
Can I use a credit card to pay my lawyer?
It's usually a bad idea. Using credit right before filing can create problems in your case.
Do I have to pay the fees all at once?
Not always. Court fees can be paid in installments, and Chapter 13 attorney fees are often spread through your plan.
Keep reading
Rebuilding your credit after bankruptcy
You might think the goal of bankruptcy is getting your debts discharged. Yes, that will give you the restart you need, but it’s after discharge that the real work begins: rebuilding your credit.
Read Debt basicsDebts bankruptcy can't erase
Bankruptcy can get rid of a lot of debt, including credit cards, medical bills, payday loans, and personal loans. However, it isn't a magic eraser. Some debts survive no matter which chapter you file.
Read Debt basicsWhat you keep in bankruptcy
The biggest fear most people have about bankruptcy is losing everything, which can keep them from filing in the first place. The truth is that people who file usually keep most or all of what they own, thanks to exemptions.
Read Debt basicsChapter 7 vs. Chapter 13: the two kinds of personal bankruptcy
When people talk about personal bankruptcy, they almost always mean either Chapter 7 or Chapter 13. Both can stop collections, but they work very differently, and there isn’t a single path forward that’s right for everyone.
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