How Much Does Bankruptcy Cost?
- Bankruptcy costs most people $1,800 to $4,000.
- Low-income people can file for free.
- You could file without a lawyer, but doing so could make it harder to have your debts discharged.
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When your financial problems are too big for debt consolidation or credit counseling, bankruptcy may be on the table. Filing bankruptcy is a serious solution for big-time financial headaches, and it can be effective. But it's not simple, and it costs money to file for bankruptcy.
Hang onto your wallet and have no fear. This guide walks you through bankruptcy costs and shows you a few ways to cut or even eliminate them.
How Much Does it Cost to File for Bankruptcy?
The cost to file for bankruptcy can be $0 if you qualify for fee waivers and do the work yourself. However, it's $1,800 to $4,000 for most people.
Several factors drive the cost of filing for bankruptcy:
Which chapter you file—usually Chapter 7 or Chapter 13
Whether you qualify for fee waivers
Whether you hire a lawyer
Once you know the cost of filing bankruptcy and how much debt you can wipe out, you can decide if bankruptcy is worth it.
Filing Fees and Court Costs for Bankruptcy
Bankruptcy filing fees typically cost a few hundred dollars. These basic fees are regulated at the federal level, so they’re the same for everyone.
Chapter 7: $338 including a $245 filing fee, a $78 administrative fee, and a $15 surcharge
Chapter 13: $313 including a $236 filing fee and a $78 administrative fee
What if you can't afford to file bankruptcy?
If you can't afford to pay Chapter 7 bankruptcy fees, you could ask to make payments instead. The form to look for is the Application for Individuals to Pay the Filing Fee in Installments (Official Form 103A).
Another option, if your income is less than 150% of the federal H.H.S Poverty Guidelines, is asking the court to waive the fee. Look for a form called the Application to Have the Chapter 7 Filing Fee Waived (Official Form 103B).
Fee waivers and installment plans generally aren't an option in Chapter 13 cases.
Attorney Fees for Bankruptcy
Expect to pay $1,500 to $2,500 in attorney fees for a Chapter 7 case. Fees in your area may be lower or higher. With Chapter 7, most lawyers generally want to be paid upfront. However, many lawyers offer free initial consultations, giving you 30 to 60 minutes of free advice. This is a great way to find out what chapter would be right for you and estimate costs.
Chapter 13 cases are more complicated. Expect to pay $2,500 to $3,500 for a Chapter 13 filing. These fees can be rolled into the monthly payment that you make into your Chapter 13 plan, spread out over the length of your bankruptcy case. Chapter 13 cases tend to be more complicated and go on for years.
Additional Bankruptcy Costs to Consider
Before you file bankruptcy, you have to complete a credit counseling session. This helps you understand your money situation better. After you file, you need to take a class about managing your money. These two things can’t be done at the same time. There's no way to file without the credit counseling certificate, and your debts won't be discharged without proof of the debtor education. Counseling and education costs run from $0 to about $50. Bankruptcy courts maintain lists of approved counseling services. If you qualify for a filing fee waiver, you might qualify for free counseling as well.
Can You File Bankruptcy Without a Lawyer?
Of course you can. There's no law that says you have to use a lawyer to file, and you could save hundreds or thousands by doing it yourself.
If you're comfortable with legal terminology and good at paperwork, you may be able to navigate the bankruptcy process on your own. DIY bankruptcy is definitely allowed, and many people successfully discharge their own debt.
That said, it's not a simple process. Missing a date, filling out a form incorrectly, or leaving out a detail could get your case dismissed (tossed out of court with no debt forgiveness).
You should also know that filers with lawyers successfully complete their bankruptcies at a much higher rate.
The U.S. Bankruptcy Court for the Central District of California reported that from 2017 to 2018, only 55.6% of self-represented Chapter 7 petitioners received a discharge. The success rate was 94.1% for those who had a lawyer. For Chapter 13 filers, the success rate for self-represented filers was only 2.9%, compared to 69.1% for represented filers.
Is Bankruptcy Worth the Cost?
The cost and benefit of bankruptcy depends on a lot of factors:
How much debt you have
The value of any non-exempt assets you have
Whether you qualify for fee waivers
Whether you can file without an attorney's help
Read more: How to Get Out of Credit Card Debt Without Paying: 5 Strategies
People just like you are seeking debt relief in Kansas City, MO and across the country. The first step is the most important one—explore your options.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during December 2025. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Credit utilization and debt relief
How are people using their credit before seeking help? Credit utilization measures how much of a credit line is being used. For example, if you have a credit line of $10,000 and your balance is $3,000, that is a credit utilization of 30%. High credit utilization often signals financial stress. We have looked at people who are seeking debt relief and their credit utilization. (Low credit utilization is 30% or less, medium is between 31% and 50%, high is between 51% and 75%, very high is between 76% to 100%, and over-utilized over 100%). In December 2025, people seeking debt relief had an average of 74% credit utilization.
Here are some interesting numbers:
| Credit utilization bucket | Percent of debt relief seekers |
|---|---|
| Over utilized | 30% |
| Very high | 32% |
| High | 19% |
| Medium | 10% |
| Low | 9% |
The statistics refer to people who had a credit card balance greater than $0.
You don't have to have high credit utilization to look for a debt relief solution. There are a number of solutions for people, whether they have maxed out their credit cards or still have a significant part available.
Collection accounts balances – average debt by selected states.
Collection debt is one example of consumers struggling to pay their bills. According to 2023, data from the Urban Institute, 26% of people had a debt in collection.
In December 2025, 30% of debt relief seekers had a collection balance. The average amount of open collection account debt was $3,203.
Here is a quick look at the top five states by average collection debt balance.
| State | % with collection balance | Avg. collection balance |
|---|---|---|
| District of Columbia | 23 | $4,899 |
| Montana | 24 | $4,481 |
| Kansas | 32 | $4,468 |
| Nevada | 32 | $4,328 |
| Idaho | 27 | $4,305 |
The statistics are based on all debt relief seekers with a collection account balance over $0.
If you’re facing similar challenges, remember you’re not alone. Seeking help is a good first step to managing your debt.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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Author Information
Written by
Gina Freeman (Pogol)
Gina Freeman (Gina Pogol) enjoys breaking down complicated subjects and helping consumers feel comfortable making financial decisions. An acknowledged expert in mortgage and personal finance since 2008, Gina's experience include mortgage lending and underwriting, tax accounting, and credit bureau systems consulting. You can find her articles on MSN Money, Fox Business, Forbes.com, The Motley Fool and other respected sites.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
Is there a credit card debt forgiveness program?
Only Chapter 7 bankruptcy can erase a credit card debt. A debt resolution program won't entirely forgive a debt, but it's a way to negotiate with creditors so you can move forward toward a better financial future.
What’s worse for credit scores—debt settlement or bankruptcy?
Debt settlement and bankruptcy both appear as negative marks on your credit report and will almost certainly lower your credit score. How much debt settlement or bankruptcy lowers your score depends on your starting score. If you're already missing payments, the credit damage may be less severe. If you have a perfect history of on-time payments, filing for bankruptcy or settling your debts could cause your credit score to drop sharply.
Once your bankruptcy is complete or your debts have been settled, your score could increase over time if you always pay on time, keep your credit card balances low, and avoid applying for credit until you need it.
Is debt relief the same as bankruptcy?
Debt relief is similar to bankruptcy because it allows you to satisfy unsecured debt for less than the amount owed. However, there are differences.
Bankruptcy is a matter of public record. Debt settlement is a private process. Chapter 7 bankruptcy typically takes a few months, while debt relief usually takes two to four years. Chapter 13 bankruptcy takes three to five years. Debt relief and bankruptcy are similar in some ways. They can both result in you paying less than the full amount you owe.
However, note that about half of Chapter 13 bankruptcies result in full repayment, plus bankruptcy and attorney fees. That means those people might have paid less if they had not filed for bankruptcy. So if you don't qualify for Chapter 7 or you don't want to lose assets, debt relief might help you more than Chapter 13.