How Much to Declare Bankruptcy

How Much to Declare Bankruptcy: A Comprehensive Guide

Financial hardships can sometimes push individuals to consider filing for bankruptcy as a way to regain control of their financial situation. However, before making such a decision, it is crucial to understand the costs involved in declaring bankruptcy. In this article, we will explore the various expenses associated with bankruptcy filings and provide answers to frequently asked questions.

Bankruptcy Costs: An Overview

The cost of declaring bankruptcy varies depending on several factors, including the type of bankruptcy you choose to file, your location, and the complexity of your case. Here are some common expenses you can expect to encounter when considering bankruptcy:

1. Court Filing Fees: When filing for bankruptcy, you will be required to pay court filing fees. These fees differ based on the type of bankruptcy you file. As of 2021, the filing fee for Chapter 7 bankruptcy is $338, while Chapter 13 bankruptcy has a filing fee of $313. However, these fees are subject to change, so it is important to check with your local bankruptcy court for the most up-to-date information.

2. Credit Counseling and Debtor Education: Before filing for bankruptcy, you must complete credit counseling and debtor education courses. These courses are designed to help you understand your financial situation and provide you with the necessary tools to manage your finances effectively. The cost of these courses can range from $20 to $100, depending on the provider and your location.

3. Attorney Fees: Hiring a bankruptcy attorney is highly recommended to navigate the complex legal process and ensure your rights and interests are protected. Attorney fees can vary significantly depending on the complexity of your case, your location, and the attorney’s experience. On average, the cost of hiring a bankruptcy attorney ranges from $1,000 to $3,500 for Chapter 7 bankruptcy and $3,000 to $6,000 for Chapter 13 bankruptcy.

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4. Credit Report and Miscellaneous Costs: Obtaining a credit report is essential to compile accurate information about your debts and assets. While you can access your credit report for free once a year, it may be necessary to purchase additional reports throughout the bankruptcy process, which typically cost around $10 to $40 each. Additionally, there may be other miscellaneous costs, such as postage fees, photocopying expenses, and potential transportation costs for attending court hearings.

Frequently Asked Questions (FAQs):

1. Can I file for bankruptcy without an attorney?
While it is possible to file for bankruptcy without an attorney, it is generally not recommended. Bankruptcy law is complex, and mistakes in the filing process can have severe consequences. Hiring an experienced bankruptcy attorney ensures your case is handled correctly and increases your chances of achieving a favorable outcome.

2. Can I pay the bankruptcy filing fees in installments?
In certain circumstances, the bankruptcy court may allow you to pay the filing fees in installments. This option is typically available for Chapter 7 bankruptcy cases. You must file a separate application with the court to request this payment arrangement.

3. Can I include attorney fees in my bankruptcy filing?
Yes, attorney fees can be included in your bankruptcy filing. However, it is essential to discuss the specifics with your attorney to ensure compliance with bankruptcy laws and regulations.

4. Will bankruptcy eliminate all my debts?
Bankruptcy can eliminate many types of unsecured debts, such as credit card debt and medical bills. However, certain debts, such as student loans and child support payments, generally cannot be discharged through bankruptcy.

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5. Can bankruptcy help stop foreclosure or repossession?
Yes, filing for bankruptcy can provide an automatic stay, which will temporarily halt any ongoing foreclosure or repossession proceedings. However, it is essential to consult with an attorney to determine the best course of action based on your specific circumstances.


Before deciding to file for bankruptcy, it is crucial to understand the costs involved to make an informed decision. Bankruptcy expenses include court filing fees, credit counseling and debtor education costs, attorney fees, and miscellaneous expenses. Hiring an experienced bankruptcy attorney is highly recommended to navigate the legal process effectively. Always consult with a professional to evaluate your unique financial situation and explore the best options for your circumstances.