Filing for Chapter 7 bankruptcy is often seen as a financial lifeline for individuals drowning in unsecured debt, such as credit card debt, medical debt, or personal loans. However, before you file, it’s important to understand the total bankruptcy cost involved in the bankruptcy process, because even though it offers bankruptcy protection, filing isn’t free.
In this post, we’ll walk you through how much filing for Chapter 7 costs, from filing fees to attorney fees, so you can make the most informed decision possible.
Key Takeaways
The total cost of filing for Chapter 7 bankruptcy typically ranges from $1,400 to $4,000, including court filing fees, credit counseling courses, and attorney fees. These costs must generally be paid upfront before your case is filed.
Fee waivers and installment plans are available through the bankruptcy court for those who meet certain income criteria, providing relief for individuals unable to pay the full filing fee at once.
Hiring a qualified bankruptcy attorney can significantly impact your outcome, and most attorneys charge a flat fee based on the complexity of your case and local court norms, making attorney fees the most significant cost in the early stages of the bankruptcy process.
What You Need to Know about Bankruptcy
Bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts. They can do this under the protection of the federal bankruptcy court. The cost to file for bankruptcy can vary depending on the type of bankruptcy, the complexity of the situation, and attorney’s fees.
Filing for bankruptcy can provide a fresh start, but it’s essential to understand the costs involved and the potential long-term impacts on credit scores.
Bankruptcy filings can be categorized into several types, including Chapter 7 and Chapter 13, each with its own set of rules and fees. Chapter 7 bankruptcy is often referred to as liquidation bankruptcy, and it involves selling non-exempt assets to pay off unsecured debts.
On the other hand, Chapter 13 bankruptcy, known as reorganization bankruptcy, allows individuals to keep their assets. They can do this while repaying debts over a three to five-year period through a court-approved repayment plan.
The cost to file bankruptcy under Chapter 7 or Chapter 13 can vary depending on several factors, including the complexity of your financial situation and the attorney’s fees. A bankruptcy lawyer can help guide individuals through the process, ensuring they understand the costs and benefits of filing for bankruptcy.
By working with an experienced bankruptcy attorney, you can navigate the complexities of bankruptcy filings and make informed decisions about your financial future.
1. How Much Does Filing for Chapter 7 Cost?
Let’s start with the basics. The cost to file Chapter 7 bankruptcy includes several components:
Court filing fees: $338 (as of 2025)
Credit counseling course: $10–$50
Debtor education course (also known as pre-discharge debtor education): $10–$50
Attorney’s fees: $1,000–$3,500 on average
Credit report: $0–$50, depending on the provider
This means the immediate costs for a Chapter 7 bankruptcy filing can range from about $1,400 to $4,000 or more, depending on your situation and who you hire.
2. Attorney Fees: What Do Bankruptcy Attorneys Charge?
Hiring an experienced bankruptcy lawyer can make a big difference in the outcome of your bankruptcy case. Most attorneys require fees to be paid in full prior to the attorney filing the case, and most bankruptcy attorneys charge a flat fee, though in some cases, you may encounter an hourly fee structure.
3. Can You Waive the Bankruptcy Filing Fees?
Yes. If you can’t afford the bankruptcy filing fees, you can request a fee waiver from the court, as the federal government sets the criteria for eligibility. The federal government allows this for people whose income is less than 150% of the poverty line and who cannot make installment payments.
If you’re denied a fee waiver, you may still request to pay the filing fee in installments over a few months.
4. Other Costs in the Bankruptcy Process
Beyond the base bankruptcy filing fees, here are some additional bankruptcy costs you might encounter:
Credit counseling: Before you can file bankruptcy, you must complete a course through a credit counseling agency. To be valid, it must be a nonprofit credit counseling agency approved by the court.
Debtor education: After filing, you must complete a second course, also known as debtor education, to receive a discharge.
Administrative fees: Some attorneys may charge small administrative fees for things like printing and mailing.
Long-term costs: Bankruptcy can affect your interest rates, credit score, and your ability to borrow for years to come.
5. Bankruptcy Filing Process
The bankruptcy filing process typically begins with an initial consultation with a bankruptcy attorney to discuss your financial situation and determine the best course of action. During this consultation, the attorney will evaluate your debts, assets, income, and expenses to recommend the most suitable type of bankruptcy for your circumstances.
Once you decide to proceed, the attorney will help prepare the necessary documents, including the bankruptcy petition, and file them with the bankruptcy court. The court will then assign a bankruptcy trustee to oversee your case and ensure that creditors are paid according to the bankruptcy plan.
Final Thoughts: Is Chapter 7 Worth the Cost?
While the cost to file for bankruptcy under Chapter 7 can feel high, it is often a fraction of what you may owe in existing debts. Working with a skilled bankruptcy lawyer can increase your chances of a successful discharge and minimize the chances that your creditors challenge your petition.
In many cases, the relief from debt collectors, the fresh start, and the halt to wage garnishments are well worth the legal fees and administrative costs. If you’re unsure where to start, consider contacting a nonprofit credit counseling agency to evaluate your options.
If you’re considering filing for Chapter 7, remember: the cost of bankruptcy may be steep, but the cost of not filing could be even greater. Factors such as location and case complexity can create a substantial difference in the overall costs.
At SB Legal, we can help you with questions about bankruptcy and filing a petition. Contact us today for a free consultation.
Frequently Asked Questions
Can I file for Chapter 7 bankruptcy without a lawyer?
Yes, you can file pro se (without an attorney), but it is not recommended unless you have a simple case and understand bankruptcy law. Filing incorrectly can result in delays, dismissal, or loss of property.
Most courts strongly encourage hiring a bankruptcy attorney due to the legal complexity involved. Understanding the specific requirements and implications of each bankruptcy chapter is crucial for a successful filing.
How long does a Chapter 7 bankruptcy stay on my credit report?
A Chapter 7 bankruptcy will remain on your credit report for ten years from the date of filing. However, many filers begin to rebuild their credit within one to two years through responsible financial habits, including secured credit cards or small credit-building loans.
What happens to my co-signers if I file for Chapter 7 bankruptcy?
If you have co-signers on any of your debts, they may still be held responsible for the full balance after you receive a discharge. Chapter 7 does not protect co-debtors from collection efforts unless the debt is paid off or reaffirmed.
You may want to discuss this with an attorney if it applies to your case. It’s also important to note that certain debts, such as child support, cannot be discharged through bankruptcy.
