Bankruptcy Costs 2024

The average cost of bankruptcy is between $2,000 and $6,000 and more for 2024. Read on to learn more.

The cost of filing for bankruptcy can vary depending on several factors, including the type of bankruptcy, the complexity of the case, and the fees charged by attorneys and bankruptcy courts. As of 2024, here’s a general overview of the costs associated with filing for bankruptcy in the United States:

Chapter 7 Bankruptcy

1. Attorney Fees:
   • Attorney fees for Chapter 7 bankruptcy can range from a few hundred to several thousand dollars, depending on the complexity of the case and the attorney’s experience.
   • Some attorneys offer flat-rate fees for Chapter 7 bankruptcy, while others charge hourly rates. It’s essential to inquire about fees during the initial consultation.
2. Court Filing Fees:
   • As of 2024, the filing fee for Chapter 7 bankruptcy is $338. This fee is paid directly to the bankruptcy court when the petition is filed.
   • In some cases, debtors may qualify for a waiver of the filing fee if they meet certain income criteria.
3. Credit Counseling and Debtor Education Courses:
   • Before filing for bankruptcy, debtors are required to complete credit counseling from an approved agency. The cost of this course can vary but is typically around $50 to $100.
   • Additionally, debtors must complete a debtor education course after filing for bankruptcy, which can also cost around $50 to $100.

Chapter 13 Bankruptcy

1. Attorney Fees:
   • Attorney fees for Chapter 13 bankruptcy are typically higher than for Chapter 7 due to the additional complexity of creating and administering a repayment plan.
   • Attorney fees for Chapter 13 bankruptcy may range from $2,500 to $6,000 or more, depending on the circumstances of the case and the attorney’s fee structure.
2. Court Filing Fees:
   • As of 2024, the filing fee for Chapter 13 bankruptcy is $313. This fee is paid directly to the bankruptcy court when the petition is filed.
   • Similar to Chapter 7, debtors may qualify for a waiver of the filing fee in Chapter 13 bankruptcy under certain circumstances.
3. Credit Counseling and Debtor Education Courses:
   • The costs associated with credit counseling and debtor education courses are the same for Chapter 13 bankruptcy as they are for Chapter 7.

Additional Costs

1. Credit Report Fees:
   • Debtors may incur fees for obtaining credit reports, which are necessary for completing bankruptcy paperwork and evaluating the debtor’s financial situation.
2. Miscellaneous Costs:
   • Depending on the circumstances of the case, debtors may incur additional costs for services such as obtaining copies of financial documents, notary fees, postage, and transportation.

The total cost of filing for bankruptcy can vary significantly depending on individual circumstances and the jurisdiction in which the case is filed. It’s essential for debtors to obtain accurate information about fees and costs from their attorney and to budget accordingly for the bankruptcy process. Additionally, some individuals may qualify for fee waivers or payment plans to help alleviate the financial burden of filing for bankruptcy.