How Much Does Bankruptcy Cost?

Bankruptcy is a federally approved legal way out of mounting debt that is considered a last resort. A Chapter 7 or Chapter 13 case can be filed individually through the local division of your federal bankruptcy court, or you can opt to hire a lawyer to handle the case on your behalf.

Chapter 7 Cost

in spring 2009, it cost $299 to file a Chapter 7 bankruptcy case. Chapter 7 allows for almost total debt forgiveness.

Chapter 13 Cost

As of spring 2009, it costs $274 to file a Chapter 13 bankruptcy case. Chapter 13 allows for the court and debtor to restructure obligations and pay them off over a two to five year period.

Attorney Fees

Attorney fees for bankruptcy usually start around $400, but can exceed $2,000 in states such as California. The costs normally include filing paperwork and making any required court appearances.

Back Taxes

Taxes less than three years old cannot be included in any bankruptcy case, and must be repaid in full. Other taxes may be discharged in bankruptcy.

Court Fines

Any court fines or drunken driving lawsuits cannot be included in bankruptcy, and also must be repaid in full as required.

Resources

• United States Bankruptcy Court