Filing for bankruptcy involves more than a court fee. Depending on the type of bankruptcy you file, your total expenses may also include attorney fees, required credit counseling, debtor education, and other case-related costs.
Chapter 7 and Chapter 13 also work differently, so the amount you pay and when you pay it can vary. Before filing, understanding the potential expenses can help you determine what you may need to budget for the process.
Start With Bankruptcy Court Filing Fees
The current total court fee for filing a Chapter 7 bankruptcy petition is $338. A Chapter 13 petition currently costs $313. These totals include applicable filing, administrative, and Chapter 7 trustee surcharge fees.
Court fees can change, so confirm the current amount with the bankruptcy court before filing.
If you can't pay the entire filing fee at once, you may be able to request permission to pay in installments. Some qualifying Chapter 7 filers may also apply for a filing-fee waiver.
Attorney Fees May Be the Largest Expense
For many filers, attorney fees represent a larger expense than court costs.
The amount can vary significantly depending on where you live, which chapter you're filing, and the complexity of your case. Chapter 13 representation may cost more because the case involves a repayment plan that typically lasts several years.
You can file without an attorney, but doing so means taking responsibility for completing bankruptcy forms, understanding applicable exemptions, meeting deadlines, and following court procedures.
Because bankruptcy laws and exemptions can be complex, consider the potential risks as well as the money you might save by filing without representation.
Payment Timing Can Depend on the Chapter
How attorney fees are paid can differ between Chapter 7 and Chapter 13 cases.
With Chapter 7, attorneys may require some or all of their fees before filing. Chapter 13 attorneys may allow part of their compensation to be paid through the court-approved repayment plan, depending on local rules and the arrangement with the attorney.
Ask about retainers, payment schedules, and any additional charges during an initial consultation.
Credit Counseling Is Part of the Process
Individual bankruptcy filers generally must complete approved credit counseling within 180 days before filing, subject to limited exceptions.
A separate debtor education requirement generally applies after filing before an eligible debtor can receive a discharge.
Course providers may charge fees, although costs and possible waivers or reductions can vary. Make sure you're using an approved provider and understand the applicable timing requirements.
Chapter 7 and Chapter 13 Work Differently
The type of bankruptcy you file affects more than the cost.
Chapter 7
Chapter 7 generally doesn't involve the three- to five-year repayment plan used in Chapter 13. A trustee administers the case, and nonexempt property may potentially be sold for the benefit of creditors.
Certain qualifying debts may be discharged, but not every type of debt is dischargeable.
Chapter 13
Chapter 13 allows eligible individuals with regular income to propose a repayment plan that generally lasts three to five years. It may provide a way to address certain past-due secured obligations while keeping qualifying property, depending on the circumstances.
Neither chapter is automatically appropriate for everyone. Eligibility and outcomes depend on your finances and applicable bankruptcy law.
Consider Other Bankruptcy-Related Costs
Court and attorney fees aren't necessarily the only expenses you may encounter.
You could also have costs associated with obtaining required documents, credit counseling, debtor education, copies, mailing, amendments, or other court-related services.
Individually, some expenses may be relatively small, but including them in your budget can give you a more realistic picture of the total cost.
Explore Options If You Can't Afford the Upfront Cost
If bankruptcy appears appropriate but the upfront expenses are difficult to manage, you may have several options to investigate.
Depending on your circumstances, these could include:
- Applying to pay eligible court fees in installments
- Applying for a Chapter 7 filing-fee waiver if you meet the requirements
- Looking for nonprofit or pro bono legal assistance
- Asking attorneys about available payment arrangements
Eligibility varies, and applying for assistance doesn't guarantee that it will be approved.
Consider the Financial Impact Beyond Filing Fees
The immediate filing costs aren't the only financial consideration.
Bankruptcy can affect your credit history and ability to qualify for certain forms of credit. The effects can vary depending on the type of bankruptcy, your previous credit history, and what happens after filing.
You should also consider which debts may or may not be discharged and how bankruptcy could affect your property.
Understand the Full Cost Before Filing
Bankruptcy costs can include court fees, legal representation, required courses, and smaller administrative expenses. The final amount can vary considerably based on the chapter you file, your location, your attorney, and the complexity of your financial situation.
Before proceeding, confirm current court fees and discuss potential legal costs with a qualified bankruptcy attorney. Understanding both the immediate expenses and longer-term implications can help you evaluate bankruptcy alongside other debt-management options.
