How Much Does it Cost to File Bankruptcy in 2025?

Bankruptcy costs can start at $1,000 and go up $15,000 in some cases, depending on how you file. It’s important for business owners to include court and debt counseling fees when filing bankruptcy, although those fees can sometimes be waived.

Between March 2023 and 2024, over 20,000 businesses filed for bankruptcy—about a 40% increase from the previous 12-month period. While bankruptcy can offer a path to relief, its associated expenses and long-term financial impacts can be significant. Before you take this step, let’s review expected bankruptcy costs and other long-term financial considerations to help you prepare.

Bankruptcy costs at a glance

Like other legal matters, the total cost of bankruptcy depends on the location, your business’ finances, and the chapter you file. Still, everyone who declares Chapter 7, 11, or 13 bankruptcy should plan for these immediate expenses: 

• Bankruptcy attorney rates: Lawyers may charge between $1,000 and $5,000, with Chapter 13 cases usually costing more than Chapter 7 cases. However, attorney rates for Chapter 11 bankruptcy can run even higher, often starting at $15,000. 
• Court filing fees: These fees vary from $313 to $1,738, with Chapter 13 being the least expensive and Chapter 11 being the most expensive. 
• Credit and debt counseling: Chapter 7 and 13 bankruptcy filers must take approved education courses that cost between $0 and $50. Waivers or reductions may be available for those unable to pay. 

It’s important to note that the federal government sets each filing fee, which can change periodically. Legal fees can also vary significantly from state to state, so it’s best to consult a bankruptcy lawyer to determine the most accurate cost for your particular case. 

Breakdown of immediate bankruptcy costs

Now that we’ve established the general costs of filing, let’s explore each expense in greater detail for each of the three types of bankruptcy.

Credit counseling courses

Individuals and businesses pursuing Chapter 7 or 13 bankruptcy must take a credit counseling class up to 180 days before they file. During this step, a credit counseling agency reviews your budget and explores potential alternatives to bankruptcy. The cost for these courses typically ranges from $0 to $50, but you may be eligible for a fee waiver or reduction if you can’t afford it. 

After filing for bankruptcy, you must then take a debtor education course within 60 days of the 341 hearing, also known as the meeting of creditors. If you don’t complete the course and submit your certificate on time, the court may dismiss the case. 

Filing fees

All bankruptcy courts charge the same fees as determined by the U.S. federal court system. Here’s a breakdown of the current charges:

Chapter 7 fee total: $338

• $245 filing fee
• $78 administrative fee
• $15 trustee surcharge 

Chapter 11 fee total: $1,738

• $1,167 filing fee
• $571 administrative fee

Chapter 13 fee total: $313

• $235 filing fee
• $78 administrative fee

Additionally, anyone filing for Chapter 7 bankruptcy who demonstrates financial hardship can request to split the $338 filing fee into smaller payments or waive it entirely. These fees are also subject to change, and you should confirm the current rates to ensure you’re prepared to pay for them. 

Attorney fees

Attorney fees are undoubtedly the most significant cost in the immediate stages of the bankruptcy process. These fees can vary depending on the bankruptcy chapter, the case’s size, the attorney’s experience, and the location. Higher inflation can also affect these rates, but here’s a general ballpark of what you can expect: 

• Chapter 7 attorney fees: $1,000 to $3,000. This fee is usually a flat rate set during the initial consultation and must be paid in full before filing the case. 
• Chapter 11 attorney fees: $15,000 or more. Chapter 11 bankruptcy is the most expensive in terms of attorney fees, with some cases reaching well into the six figures. These cases are highly complex, especially for larger companies with considerable debt. Due to the extensive amount of work involved, attorneys usually bill hourly, and it's not uncommon for a larger bankruptcy law firm to get involved. 
• Chapter 13 attorney fees: $2,500 to $5,000. These fees are generally higher than Chapter 7 due to the extra work. Most lawyers usually require an initial deposit to file the case, with the remaining balance included in the client’s Chapter 13 payment plan. 

In addition, bankruptcy attorneys must disclose their fees to the court and obtain approval. By law, they must charge a presumptively reasonable attorney fee given the work required for the case and their experience, as well as other relevant factors determined by the court. 

Extended cost considerations

Beyond the immediate expenses, filing for bankruptcy has several long-term costs and financial implications. Here are some of the most crucial considerations to keep in mind: 

Impact on credit score

When you file for Chapter 7 bankruptcy, the case stays on your credit report for ten years. For Chapter 13 bankruptcy, this period is seven years. Regardless of the chapter, it’s normal to see credit scores drop significantly, sometimes by hundreds of points. 

As a result, a poor credit score may impact your ability to rent housing or commercial space, since landlords often check credit reports as part of the tenant screening process. Even employment opportunities can be affected, as some employers review credit histories during background checks. 

Difficulty in obtaining new credit

A lower credit score can also make obtaining new lines of credit more challenging, especially unsecured debt like credit cards. Lenders view bankruptcy as a high-risk indicator, meaning if you do manage to secure new credit, you can expect to pay higher interest rates and receive lower credit limits. 

In some cases, lenders may deny credit applications entirely, especially for individuals who have recently filed for bankruptcy. In other cases, lenders may also impose stricter qualification criteria, including higher down payments, more extensive documentation, and additional security measures to mitigate risk. 

Increased insurance premiums

Filing for bankruptcy can lead to higher insurance premiums, including auto, home, and life insurance. Similar to obtaining new credit, a bankruptcy filing can signal that you’re a higher-risk applicant, so insurers typically increase premiums to offset this perceived risk. 

To mitigate these increases, you should shop around for better rates and consider working with an insurance broker. Over time, improving your credit score can also help lower insurance premiums, as insurers may offer more favorable terms to those who demonstrate financial responsibility. 

Cost of future loans

If you qualify for new loans post-bankruptcy, lenders will likely offer high-interest terms that increase the overall cost of major purchases such as cars, homes, or business equipment. For example, suppose you need to borrow $20,000 to purchase a vehicle. Pre-bankruptcy, you might have qualified for an interest rate of 4%, resulting in a monthly payment of about $368 with $2,088 in total interest paid over a five-year term. 

However, post-bankruptcy, let’s say you qualify for an interest rate of 10%. This higher rate would push your monthly loan payments to about $425 and the total interest paid to around $5,500 over the same term. As you can see, the additional interest significantly raises the overall cost of the loan, which only compounds for more expensive purchases like real estate. 

Tips for managing bankruptcy costs 

Filing for bankruptcy can be a costly process, but there are strategies to help manage these expenses—the most significant being the legal help you get. Here are some practical tips to navigate the financial challenges of bankruptcy:  

Payment options for bankruptcy filing fees

One way to manage the immediate costs of bankruptcy is by exploring payment options for your filing fee. For instance, in Chapter 7 bankruptcy, the court may allow you to divide the fee into smaller installments over a specified period, if not waive it entirely. Chapter 13 filers can often incorporate the filing fee into their repayment plan, spreading the cost over several months.  

It’s important to check with a lawyer and your local bankruptcy court to understand the specific conditions and options available for paying the filing fee in installments. While taking advantage of flexible payment options can make the initial cost more affordable, it’s not available for every chapter. 

Attorney payment plans

Given that attorney fees are one of the most expensive parts of the bankruptcy process, it’s always helpful to split them into more manageable pieces. Payment plans are more common in Chapter 13 cases, but lawyers generally charge Chapter 7 filers a flat rate. Still, it’s worth asking potential bankruptcy lawyers about this option, as some might offer flexible payment plans. 

Find the right bankruptcy lawyer

A knowledgeable attorney is the best person to have in your corner throughout the bankruptcy process. Start by comparing rates and services from multiple bankruptcy attorneys to find one who offers reasonable rates that you can afford. However, don’t automatically choose the cheapest option. Instead, consider the attorney’s experience, especially in cases similar to yours, as their track record can make a substantial difference in the outcome. 

Additionally, schedule initial consultations with potential lawyers to discuss your bankruptcy case, ask about their fee structure, and get a feel for how you like working with them. Above all, your goal is to find a lawyer who fits your budget and reassures you with their expertise and approach. 

When you’re ready to start, LegalZoom can help you connect with an experienced attorney specializing in Chapter 11 or Chapter 13 bankruptcy. We’re here to help you start the path to financial stability with affordability and ease. 

FAQs

For more information about the costs of filing for bankruptcy, take a look at related questions readers typically have.

Will I still owe money after bankruptcy? 

You may owe some money after completing the bankruptcy process. For instance, secured debts, child support, student loan debt, and income taxes are generally not dischargeable in bankruptcy. It’s best to consult a bankruptcy lawyer to clarify which of your debts will remain. 

Is it cheaper to file Chapter 7 or 13?

Chapter 13 has a cheaper filing fee than Chapter 7 bankruptcy, but the attorney fees for the former typically run higher. However, Chapter 13 may help you keep more assets by restructuring your debt into manageable payments over time, whereas Chapter 7 doesn’t offer the same flexibility. 

How much does a bankruptcy lawyer cost?

Bankruptcy lawyer fees vary by chapter and the scope of the case. Lawyers may charge between $1,000 to $3,000 for Chapter 7 cases, while Chapter 13 fees range from $2,500 to $5,000. Chapter 11 cases can cost substantially more, at least $15,000, due to the amount of work involved. 

What’s the cheapest way to file bankruptcies? 

Filing Chapter 7 bankruptcy is often the cheapest option, with a low filing fee and attorney costs compared to other chapters. However, if you have significant assets or income, Chapter 13 might be more suitable. Always consult a bankruptcy lawyer to determine the best option, as every case is unique. 

Does bankruptcy cost the same across all states? 

Bankruptcy costs can vary by state due to differences in attorney fees and case complexity. Filing fees are federally regulated, but other expenses can differ depending on where you live and how much time the attorney spends on the case.