How Much Does It Cost to File Bankruptcy?
- Bankruptcy costs most people $1,800 to $4,000.
- People with qualifying low income could file for as little as $0.
- Self-filed bankruptcies succeed far less often than cases with a lawyer.
Table of Contents
- How Much Does it Cost to File for Bankruptcy?
- Filing Fees and Court Costs for Bankruptcy
- Attorney Fees for Bankruptcy
- Additional Bankruptcy Costs to Consider
- Ways to Lower the Cost of Filing for Bankruptcy
- What Factors Affect the Cost of Bankruptcy?
- What Debt Does Bankruptcy Wipe Out?
- Can You File Bankruptcy Without a Lawyer?
- Is Bankruptcy Worth the Cost?
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Debt problems that outgrow options like debt consolidation and credit counseling still have a possible next step. Bankruptcy is a legal process, and the costs are predictable enough to plan for before a final decision. Bankruptcy filing costs most people $1,800 to $4,000. The total depends on the type of bankruptcy, fee waiver eligibility, and whether a lawyer handles the case.
The numbers below could give you a general idea of how bankruptcy costs compare to other ways to handle debt.
How Much Does it Cost to File for Bankruptcy?
Bankruptcy might enter the picture after other options, like debt consolidation or credit counseling, no longer fit the size of the debt. The cost to file for bankruptcy may be $0 if you qualify for fee waivers and do the work yourself. The total reaches $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 could 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. The federal government regulates these basic fees, 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
These fees cover the cost of processing your case through federal bankruptcy court. They don't include attorney fees or the mandatory counseling courses, which are separate costs.
What if you can't afford to file bankruptcy?
If you can't afford to pay Chapter 7 bankruptcy fees all at once, you could ask to make payments instead. The form to use is the Application for Individuals to Pay the Filing Fee in Installments (Official Form 103A).
A second option is available if your income is less than 150% of the federal H.H.S. Poverty Guidelines: request a fee waiver from the court with 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. Many lawyers offer free initial consultations that include 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. You can roll these fees into the monthly payment you make under your Chapter 13 plan, spread over the length of your 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. You need the credit counseling certificate to file, and discharge typically requires proof of the debtor education course.
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.
Other smaller costs might add up too, especially if you choose not to hire an attorney who includes them when you pay for representation. Costs like credit report fees, copies of court documents, and postage for mailing notices to creditors. The total depends on how many creditors you have and how many documents your case requires.
Ways to Lower the Cost of Filing for Bankruptcy
A few strategies could bring the total cost down, sometimes to $0.
Fee waivers and installment plans: A fee waiver often extends to the required counseling course too.
A free attorney consultation: Many bankruptcy lawyers offer a free 30 to 60 minute consultation, enough time to get a cost estimate and find out which chapter fits your situation.
Legal aid: Nonprofit legal aid organizations and law school clinics in many areas offer free or reduced-cost bankruptcy help for people who qualify based on income. Many bankruptcy courts post a list of local legal aid contacts on their websites.
Self-representation: The law doesn't require a lawyer. Self-filers could save hundreds or thousands of dollars.
What Factors Affect the Cost of Bankruptcy?
A few factors decide where the total lands within the $0 to $4,000 range.
Bankruptcy chapter: Chapter 7 cases generally cost less than Chapter 13 cases because Chapter 13 involves a multi-year repayment plan and more attorney hours over time.
Fee waiver eligibility: Filers below 150% of the federal poverty line could qualify for free court fees and free counseling, which removes some of the cost.
Legal representation: An attorney costs more upfront and improves the odds of a successful discharge, especially in a complicated case.
Location: Attorney rates and local court practices vary by state and county, so a quote in one city may not match a quote in another.
Case complexity: Multiple creditors, business debt, rental property, or assets you want to keep could add attorney hours and raise the total. A straightforward case with few creditors and no property disputes tends to cost less on both ends, court fees and attorney fees alike.
What Debt Does Bankruptcy Wipe Out?
Chapter 7 discharges most unsecured debt, including credit card balances, medical bills, personal loans, and past-due utility bills. Chapter 13 treats unsecured debt as part of the repayment plan, then discharges what's left at the end of the case.
Some debts stay on the books no matter which chapter you file. Federal law treats child support, alimony, most student loans, recent tax debt, and court fines as priority debt, and these debts typically survive both Chapter 7 and Chapter 13.
Secured debt, like a mortgage or auto loan, works differently. The bankruptcy discharges your personal responsibility for the debt. The lender keeps a claim against the collateral, like your home or car, separately.
Under Chapter 13, you may often keep secured property by staying current on payments through your plan.
Each state also sets exemption rules that protect a portion of your property, such as home equity, a vehicle, or retirement accounts, from sale in a Chapter 7 case. The things you get to keep are called exempt property. The value of your non-exempt assets (the things you might have to give up) factors into whether the cost of filing is worth it for your situation.
Can You File Bankruptcy Without a Lawyer?
No law requires a lawyer to file. Self-representation could save you money.
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. Simple Chapter 7 cases, like ones with no property to protect and only a handful of creditors, tend to be the best fit for self-representation.
Self-filed cases carry real risk. A missed deadline, an incorrectly filled-out form, or a left-out detail could get a case dismissed (tossed out of court with no debt discharge).
Success rates make the difference clear.
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 dollar cost is only part of the equation. The real question is what bankruptcy accomplishes for your specific debts and assets, measured against what it costs to get there.
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
If bankruptcy doesn't fit, credit card debt reduction strategies outside of bankruptcy are worth exploring.
People just like you are seeking debt relief in Kansas City, MO and across the country. The first step is the most important one, so explore your options.
Bankruptcy is one option for tackling debt that feels unmanageable. Compare it with debt settlement or other paths before deciding.
Take the first step toward a free debt assessment to learn more.
Debt relief stats and trends
We looked at a sample of data from Freedom Debt Relief of people seeking a debt relief program during March 2026. The data uncovers various trends and statistics about people seeking debt help.
Credit card tradelines and debt relief
Ever wondered how many credit card accounts people have before seeking debt relief?
In March 2026, people seeking debt relief had some interesting trends in their credit card tradelines:
The average number of open tradelines was 14.
The average number of total tradelines was 26.
The average number of credit card tradelines was 7.
The average balance of credit card tradelines was $15,142.
Having many credit card accounts can complicate financial management. Especially when balances are high. If you’re feeling overwhelmed by the number of credit cards and the debt on them, know that you’re not alone. Seeking help can simplify your finances and put you on the path to recovery.
Credit card debt - average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to March 2026 data, 88% of the debt relief seekers had a credit card balance. The average credit card balance was $15,715.
Here's a quick look at the top five states based on average credit card balance.
Avg credit card debt by state
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| $8,268 | 7 | $24,102 | 103% | |
| District of Columbia | $15,109 | 9 | $28,791 | 81% |
| Oklahoma | $13,229 | 9 | $27,261 | 81% |
| Alabama | $12,716 | 8 | $25,731 | 81% |
| South Dakota | $14,865 | 8 | $26,156 | 80% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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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.
Frequently Asked Questions
Is there a credit card debt forgiveness program?
Only Chapter 7 bankruptcy wipes out credit card debt in full.
Debt settlement doesn't get rid of the whole debt. It's a way to negotiate directly with creditors to pay less than the full balance.
What happens to my house or car if I file for bankruptcy?
Bankruptcy treats your home or car differently than it treats unsecured debt like credit cards. The lender keeps its claim on the property, and state exemption rules decide how much home or vehicle equity you could protect from sale in Chapter 7. Many filers keep their home or car if the equity fits within the exemption and payments stay current. An attorney or legal aid organization may be able to help you check the exemption rules in your state before you file.
What’s worse for credit scores: debt settlement or bankruptcy?
Debt settlement and bankruptcy both appear as serious negative marks on your credit report and typically damage your credit score. How much your score drops depends on your starting point. If you're already missing payments, the credit damage from either option may be less severe. If you have a perfect history of on-time payments, filing for bankruptcy or settling your debts is likely to cause your credit score to drop sharply.
Chapter 7 bankruptcy remains on your credit reports for ten years. Collection accounts, debt settlement, and Chapter 10 bankruptcy remain on your credit reports for seven years.
Once you complete your bankruptcy or settle your debts, you could build and maintain good credit just like anyone else, whether they’ve struggled in the past or not. Pay bills on time, keep credit card balances low, and avoid applying for new credit until you need it.
Is debt settlement the same as bankruptcy?
No, debt settlement is not equivalent to bankruptcy. They are two strategies for dealing with overwhelming debt. There is the potential for debt forgiveness at the end of both paths.
Bankruptcy is a matter of public record. Debt settlement is a private process.
Chapter 7 bankruptcy typically takes a few months. A debt settlement program usually takes two to four years. Chapter 13 bankruptcy usually takes five years.
About half of Chapter 13 plans end in full repayment, plus bankruptcy and attorney fees.
Bankruptcy requires full financial disclosure: what you earn, what you own, and what you owe. The goal of debt settlement is to resolve unsecured debts for less than the full amount you owe, and your financial details may remain private.
Debt settlement and bankruptcy could both result in paying less than the full amount owed. Debt settlement may be worth exploring as an alternative to bankruptcy if you don't qualify for Chapter 7, want to keep your finances private, or want to avoid losing assets.