What Is The Cost Of Filing For Bankruptcy?

The cost of filing for bankruptcy includes several components, such as court filing fees, attorney fees, and required education courses. These costs can vary depending on the complexity of your case, your geographical location, and whether you’re filing for Chapter 7 or Chapter 13 bankruptcy. Here’s a breakdown of the potential costs involved:

Court Filing Fees

• Chapter 7 Bankruptcy: As of my last update in April 2023, the filing fee for a Chapter 7 bankruptcy case is $338. This fee is paid to the bankruptcy court when you file your petition.
• Chapter 13 Bankruptcy: For Chapter 13 bankruptcy, the filing fee is $313. Similar to Chapter 7, this fee is paid directly to the court.

Attorney Fees

• Chapter 7 Bankruptcy: Attorney fees for Chapter 7 can vary widely but typically range from $1,000 to $2,500. The complexity of your case, the region you live in, and the experience level of the attorney can all influence the cost.
• Chapter 13 Bankruptcy: Chapter 13 attorney fees are generally higher due to the complexity and length of the case. Fees can range from $2,500 to $6,000 or more. In some jurisdictions, there are set fee guidelines for Chapter 13 cases, but fees can vary based on case specifics and attorney experience.

Required Education Courses

• Credit Counseling and Debtor Education: Bankruptcy filers are required to complete two educational courses: a credit counseling course before filing and a debtor education course after filing. Each course typically costs between $10 and $50, and fees can vary by provider. Some providers may offer fee waivers or reductions based on financial hardship.

Additional Costs

• Credit Report: You may need to obtain a credit report from each of the three major credit reporting agencies to ensure all your debts are listed in your bankruptcy filing. Costs can vary, but some services offer bundled reports for around $30 to $40.
• Amendments and Miscellaneous Fees: If you need to amend your filings or require additional services from your attorney, there may be additional fees. These vary based on the nature of the amendment and the attorney’s pricing structure.

Reducing Bankruptcy Costs

• Fee Waivers: If you cannot afford the Chapter 7 filing fee and your income is below 150% of the federal poverty line, you may qualify for a fee waiver.
• Installment Payments: Both Chapter 7 and Chapter 13 filers can apply to pay the filing fee in installments if they cannot pay it all at once.
• Pro Bono and Legal Aid: Low-income filers may qualify for free legal assistance through legal aid organizations or pro bono programs.

While the cost of filing for bankruptcy can be significant, especially when you’re already facing financial difficulties, it’s important to weigh these costs against the relief and fresh start bankruptcy can provide. Discussing your situation with a bankruptcy attorney can help you understand the potential costs and benefits in your specific case. Many attorneys offer free initial consultations, which can be a valuable opportunity to explore your options.