How Much Does Bankruptcy Cost?

When filing for bankruptcy, there are a number of costs that are involved, so we thought it prudent to take a look at all the fees involved to give individuals a concrete number. Since these fees can vary in certain situations, we’ll give an average range of what you can expect. The total cost of a bankruptcy also depends on which Chapter of bankruptcy you end up filing.

Filing Fees and Course Fees

No matter if you file for bankruptcy in Florida or California, you must pay a filing fee. For a Chapter 7 bankruptcy the fee is $335 and for Chapter 13, it’s $310. On top of this fee, the bankruptcy trustee, who handles your bankruptcy case, will usually charge somewhere in the range of $20. Before filing bankruptcy every person must take a credit counseling course within 6 months of filing, and depending on where you take this course, it could run you somewhere in the neighborhood of $100.

Bankruptcy Attorney Fees

With a less than 1% success rate in Chapter 13 bankruptcy cases filed WITHOT an attorney, the attorney fees are a necessity, lest you waste the other fees, which are non-refundable. The national average fees for a bankruptcy attorney in a Chapter 7 case is around $1250. For a Chapter 13 case the national average is $3000. Keep in mind that every situation is different so it may be less or more depending on where you live and the complexity of the case, as well as, if you qualify for discounts. Furthermore, some bankruptcy lawyers will only charge filing fees up front and take the rest of their fee through payments made the trustee over the life of your bankruptcy case.

Again, this only an estimate, and variations in case are both wide and deep. Keep in mind that even if you paid around $6500 for a Chapter 13 bankruptcy case that the monthly payment would only be around $110 a month.

So what do you get for all this? First you’re getting an insider that knows all the rules, systems courts, trustees, their staff, and the bankruptcy judges. You are also getting a legal expert to help you prepare an airtight bankruptcy petition that has a much higher chance of getting accepted by the courts. Lastly, the average credit card holder pays around $800 dollars per year in interest alone. Filing bankruptcy will be a onetime fee to ensure that you begin a path to financial health and credit recovery.