How much does it cost to file bankruptcy? Each fee explained

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

When contemplating bankruptcy, most individuals find themselves in a state of financial distress. Added stress can come from having to worry about how much it is going to cost. However, understanding the costs associated with bankruptcy can help you make the decision that is right for you. In this information, you’ll learn about the various court filing fees, along with attorney fees should you choose to seek legal representation.

How much is it to file bankruptcy?

There are different costs associated with filing for bankruptcy. These costs can vary based on which chapter of bankruptcy you file and if you choose to be represented by an attorney. For example, Chapter 7 bankruptcy, which is typically for individuals looking to eliminate debts, will have different fees than Chapter 13 bankruptcy, which is for a debt repayment plan. If you decide to seek legal help, attorney fees can vary depending on the complexity of your case.  

Bankruptcy filing fees

Bankruptcy filing fees are payments made to the court for the right to have your case heard. Similiar to the overall cost, these filing fees vary depending on the type of bankruptcy you file. The fees are typically divided into a filing fee when you petition the court and an administrative fee.

When considering which form of bankruptcy is right for you, it’s important to note that Chapter 7 involves an additional fee because you’ll need to cover the costs of a trustee. In the Chapter 7 process, the trustee reviews your financial documents and provides information to the court regarding your assets and your eligibility for this type of bankruptcy.

A trustee is also involved in the Chapter 13 filing process, but their compensation comes from a percentage of the monthly payments you make as part of the payment plan.

The following fees are listed by the United States Courts:

Chapter 7 filing fees

• Filing fee: $245
• Administrative fee: $78
• Trustee surcharge: $15
• Reopening a Chapter 7 filing: $245

Chapter 11 filing fees

• Filing fee: $1,167
• Administrative fee: $571
• Reopening a Chapter 11 filing: $1,167

Chapter 13 filing fees

• Filing fee: $235
• Administrative fee: $78
• Reopening a Chapter 13 filing: $235

Regardless of the type of bankruptcy you file, these fees are due when you petition the court. Because you’re likely in financial distress when you file for bankruptcy, there are some cases where you may be able to make payments on the filing fees or have the fees waived entirely.

For businesses filing Chapter 11 bankruptcy, the fees are typically paid in one lump sum. 

How much does a lawyer charge for Chapter 7, Chapter 11 and Chapter 13 bankruptcy?

Typically, the attorney fees for bankruptcy will vary depending on the complexity of your case and your location. Lawyers usually charge an hourly rate, and they can estimate the amount of time required based on various factors involved in the filing process. However, for simple or straightforward cases at Lexington Law Firm, our fees are a set flat rate. Complicated cases may require hourly fees.

Since Chapter 7 is the most common type of bankruptcy, many people wonder, “How much does it cost to file Chapter 7 bankruptcy?” Different studies have produced a range of results for national averages.

• Chapter 7: $1,450 (NOLO)
• Chapter 11: Ranges can vary greatly depending on whether it’s an individual or a business as well as the size of the business
• Chapter 13: $3,000 (Natlbankruptcy.com)

Factors that can increase fees

Factors affecting your attorney fees include how you’re filing, what types of assets you have and much more. These are just some of the factors to take into consideration when you hire an attorney:

• How many creditors you have
• How much money you make compared to the state’s median income per household
• The number of nonexempt assets you have
• Whether or not you’ve filed for bankruptcy within the last eight years
• How many sources of income you have
• If you’re filing as an individual or as a business
• Ongoing fraud cases
• How many non-dischargeable debts you have, like student loans, child support and overdue taxes
• Payment plans and other arrangements made between attorney and client

Do you need a bankruptcy attorney?

While you may know you need to file for bankruptcy, you may not know the correct process, which is where a bankruptcy attorney can help. Filing for bankruptcy not only involves quite a bit of paperwork, but it has to be done properly. If any documents are forgotten or left out, the court may not approve your case, and they may even charge you with bankruptcy fraud.

Similar to how it’s helpful to have a credit lawyer when disputing errors on your credit report, a lawyer’s expertise can help you with the bankruptcy process. They know exactly what the courts are looking for so you don’t miss anything when you file. Working with an attorney can also improve your chances of having your bankruptcy approved in a way that gives you the best outcome.

Other bankruptcy-related costs

In addition to the bankruptcy costs for filing, there are mandatory credit counseling courses that you’ll need to take. Before your bankruptcy is discharged, you’ll also need to take a debtor education course. These courses can be taken online, and they’re meant to help those who file manage their finances better.

The credit counseling courses can range between $10 and $50. For the debtor educator course, the cost is within the same $10 to $50 range. These courses must be taken through approved providers, which you can find on the U.S. Courts website.

How to reduce bankruptcy costs

Bankruptcy is often a last resort when you’re struggling with debt, so it can be difficult to find the money to cover the costs. Here are some ways you can file for bankruptcy while also saving some money:

• Pick the right bankruptcy: As you now know, there are multiple forms of bankruptcy, and some are cheaper than others. Knowing the differences between Chapter 7 bankruptcy vs. Chapter 13 can help you choose.
• Choose the right bankruptcy attorney: You should never incur additional debt to file bankruptcy. Make sure to hire an attorney who offers a 0% payment plan for attorney fees and attorney fees with are within your budget.
• Find additional sources of income: If you’re low on funds, it may be a good idea to look into a side hustle. For example, some individuals make extra money by temporarily working for a rideshare service or something similar.
• Consider pausing paying credit card debts: Since you’re filing for bankruptcy, you don’t need to worry about paying off these debts because they will be included in the filing. Attorney Cara O’Neill recommends that you cease payments once you’ve decided to file. This will free up additional funds to cover the filing fees and attorney charges. However, it’s essential to consult with your attorney before discontinuing payments on your debts.

How to file bankruptcy with no money

If you’re in a situation where you don’t have the money to pay, there are some options you can look into. Finding additional sources of income through side work is always a great way to raise money, but there are also services for those with financial hardships.

• Find a free legal clinic: There are free legal clinics as well as the Legal Aid Society, which may provide pro bono legal representation if you meet certain criteria. This is typically offered based on your current income.
• Check with the state bar: Each state has a bar association that lawyers are registered with, and they may be able to help you find local lawyers offering pro bono work.
• See if you qualify for waived fees with the court: If you meet certain requirements in your state, the court may waive filing fees or provide you with a payment plan.

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