Understanding Bankruptcy Costs: Fees vs. Expenses

When filing for bankruptcy, there are fees charged by the clerk’s office. I prefer to use the term “costs” because it’s common for debtors to confuse fees with costs. I explained the difference in a prior blog post that you can read below.

What It Costs to File for Bankruptcy

The filing fee for Chapter 7 bankruptcy differs from that for Chapter 13. For Chapter 7, the filing fee is $338. The filing fee for Chapter 13 is slightly lower at $313. Remember, you have to add the costs of the credit counseling and financial management courses, which could cost between $30 and $100.

• Don’t Confuse Attorney’s Fees with Costs

Attorney fees also vary for both chapters. For Chapter 7, fees can be anywhere from $1,000 to $3,500, depending on the complexity of the case and location. Attorney fees are higher in Chapter 13 cases due to the complexity of the case, plus the bankruptcy lawyer could be representing you for between three to five years. Therefore, fees can range between $2,500 and $6,000.

• Can You Pay Your Bankruptcy Lawyer with a Credit Card?

While many times debtors try to file Chapter 13 on their own because of the attorney’s fees, two factors should be considered. For one, less than three percent of Chapter 13 cases filed without a lawyer are successful. I have to be honest and state that the odds are not in your favor.

• Did Your Bankruptcy Lawyer Ask These Questions?

The other issue to consider is what assets are at risk of being lost if you file Chapter 13 incorrectly. Is losing your car or home worth the risk of lawyer’s fees? Probably not. At a minimum, try to find a bankruptcy lawyer for Chapter 13 cases that would take a minimal down payment and have the balance of attorney’s fees paid through the bankruptcy plan.

The Filing Fee Waiver Application

You can consider applying for a waiver of the filing fee for Chapter 7. To qualify, your income must be less than 150% of the federal poverty guideline. The bankruptcy judge has the option to deny the waiver but allow a payment plan. You can seek the waiver by filing Official Form 103B.

Fee waivers aren’t possible in Chapter 13 cases, but paying in installments is possible through the plan, so it can provide you with some flexibility with your bankruptcy costs.

For a full list of fees, please visit this link.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here.

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• Bankruptcy
• Your Wallet

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.