How much does it cost to file for bankruptcy?

Court filing fees

• Chapter 7 — $338 (a $245 filing fee, $78 administrative fee and $15 trustee surcharge).
• Chapter 13 — $313.
• Chapter 11 — $1,738, plus quarterly fees to the US Trustee for most cases.
• Chapter 12 — $278.

Fees can be paid in up to four installments with court approval. Chapter 7 filers whose household income is below 150 percent of the federal poverty guidelines and who cannot pay in installments can ask the court to waive the fee entirely.

Required courses

Individuals must take a credit counseling course from an approved provider within 180 days before filing and a debtor education course before discharge. Each typically costs about $10 to $50 online. Providers must offer reduced or free courses to people who cannot afford them.

Attorney fees

Fees vary by region and complexity:

• Chapter 7 — commonly $1,000 to $2,500, sometimes more in large cities or complex cases. Most lawyers require full payment before filing, because fees owed at filing would themselves be discharged.
• Chapter 13 — commonly $3,000 to $6,000. Many courts set a presumptively reasonable “no-look” fee. Usually only a portion is paid upfront, with the rest paid through the plan.
• Chapter 11 — often tens of thousands of dollars for small businesses; Subchapter V cases are cheaper than traditional Chapter 11.

What affects the price

• Whether you own a home or business, or have significant assets.
• Income above the state median, requiring a detailed means test.
• Tax debts, pending lawsuits or a looming foreclosure.
• Creditor objections or trustee investigations.
• Adversary proceedings, such as a creditor claiming fraud or a student loan hardship case — often billed separately.

Other possible costs

• Credit reports, often included by the attorney.
• Appraisals of a home or business.
• Fees to amend schedules or reopen a case.
• The Chapter 13 trustee's commission, up to 10 percent of plan payments.

Filing without a lawyer

People can file on their own (“pro se”), paying only the filing fee and course costs. It is more realistic for a simple Chapter 7 with low income, no home equity and no complicating factors. Mistakes — missing assets, choosing the wrong exemptions, failing to list creditors — can lead to lost property, denial of discharge or dismissal. Chapter 13 without a lawyer rarely succeeds. Bankruptcy petition preparers can type forms for a fee but cannot give legal advice.

Low-cost options

• Legal aid organizations and law school clinics for low-income filers.
• Bar association pro bono programs and volunteer lawyer projects.
• Free initial consultations offered by most bankruptcy attorneys.
• Court self-help centers with forms and guidance.

Can I use a credit card to pay for bankruptcy?

It is a bad idea. Charges made shortly before filing, especially to pay attorney fees, can be challenged as fraudulent or non-dischargeable, and the trustee may question them. Saving over a few months, borrowing from family, or choosing Chapter 13 where fees can be paid through the plan are safer options.

Is it worth the cost?

For someone with $30,000 or more in unsecured debt that cannot realistically be repaid, a Chapter 7 costing about $1,500 to $3,000 in total can eliminate years of payments and stop garnishments immediately. A free consultation with a bankruptcy attorney will usually include a clear quote and an estimate of what the filing would accomplish.

What the attorney fee usually includes

A flat fee typically covers the initial review, preparing the petition and schedules, running the means test, attending the meeting of creditors, and routine communications with the trustee. Motions to lift the stay, reaffirmation agreements, amendments, audits and lawsuits within the case are often extra. Ask for a written fee agreement that lists what is included and what costs more. Comparing two or three quotes is common and reasonable; the cheapest lawyer is not always the best value if extra services are billed separately.