How Much Does It Cost To File Bankruptcy?

How Much Does It Cost To File Bankruptcy?

When considering bankruptcy, quite naturally most debtors are worried about the costs of filing. So let’s take a look at the most common costs you may face when filing bankruptcy.

Filing Fees

Whether you’re filing a Chapter 7 or Chapter 13 bankruptcy, you will need to pay a filing fee to the bankruptcy court. This fee is mandatory even if you’re not filing with an attorney.  The filing fee for a Chapter 7 case is $335 and $310 for a Chapter 13 case.

If you have a very low income the bankruptcy court may allow you to pay your fees in installments. In some cases, depending on your circumstances they may even waive the fees.

Course Fees

You will need to pay $50 – $100 to take the two required bankruptcy courses—credit counseling and personal financial management. These courses can be taken online, in person, or over the phone, and the costs may vary depending on the company offering the course and where you’re located.

Attorney Fees

The largest expense in your bankruptcy will be attorney fees. Nationally, attorney fees for a Chapter 7 bankruptcy can range anywhere from $1250 – $1500 for a simple case. However, if the bankruptcy case is complex because of a large amount of assets or creditor issues, that cost can rise significantly.  In most cases, Chapter 7 bankruptcy attorney fees must be paid upfront before the case is filed.

For Chapter 13 bankruptcy, attorney fees can range from $3,000 – $5,000 depending on the complexity and length of the case. A simple Chapter 13 bankruptcy case slated to last 3 years may be significantly cheaper than one slated to last 5 years.

In the case of Chapter 13 bankruptcy, the debtor pays their attorney fees over the course of the case. When the debtor makes their monthly bankruptcy payment, the trustee takes a portion of those funds and pays the attorney.

The cost of your bankruptcy is influenced by a number of factors. If you want to get a specific quote, talk to a bankruptcy attorney near you.