Bankruptcy isn’t free, but for people drowning in debt, the $1,400 to $5,500 you’ll spend filing is often a fraction of what you’d pay creditors over the next decade of minimum payments.
Between court fees, attorney costs, and required counseling courses, filing adds up fast. But the upfront cost is usually the easy part to plan for. The harder question is whether bankruptcy is the right move at all, and if so, which chapter fits your situation.
This guide breaks down exactly what you’ll pay for Chapter 7 or Chapter 13 in 2026, how those costs compare to alternatives like debt settlement or consolidation, and what to expect based on your income and debt load.
Key Takeaways
- Court filing fees in 2026 are $338 for Chapter 7 and $313 for Chapter 13, with total costs typically running $1,400 to $3,500 for Chapter 7 and $3,100 to $5,500 for Chapter 13.
- Chapter 7 wipes out most unsecured debt in a few months but may cost you non-exempt assets. Chapter 13 lets you keep your property but locks you into a 3 to 5 year repayment plan.
- Alternatives like debt management plans, consolidation loans, or direct negotiation may cost less and do less damage to your credit, depending on your situation.
What Does It Cost to File Bankruptcy in 2026?
Filing for bankruptcy comes with a few core expenses: court fees, credit counseling, and attorney fees. Knowing what to expect can help you budget and avoid surprises.
Court Filing Fees
The court charges a flat filing fee based on the type of bankruptcy:
- Chapter 7: $338
- Chapter 13: $313
These fees are federally set and don’t vary by state or district. They cover the court’s administrative costs but don’t include attorney fees, credit counseling, or any amendments you file later. If you can’t afford the fee upfront, Chapter 7 filers can apply for a waiver or pay in installments. Chapter 13 filers typically roll the fee into their repayment plan.
Credit Counseling and Debtor Education
You’re required to complete two courses: a credit counseling session before filing and a debtor education course after. The pre-filing course usually runs $15 to $50. The post-filing course typically costs $35 to $50. Both can be done online, and providers must offer reduced or waived fees for filers who can’t afford them.
Attorney Fees
Most people hire an attorney to handle paperwork, court filings, and the creditors’ meeting. Here’s what you can expect:
- Chapter 7: $1,000 to $3,000
- Chapter 13: $2,500 to $5,000
Attorney fees depend on where you live, how complex your case is, and how experienced your lawyer is. Most charge a flat fee that covers the entire case from filing through discharge. Chapter 13 attorneys often accept a small upfront payment and roll the rest into your repayment plan.
Cost Comparison Table
| Expense Type | Chapter 7 | Chapter 13 |
|---|---|---|
| Court Filing Fee | $338 | $313 |
| Attorney Fees | $1,000 to $3,000 | $2,500 to $5,000 |
| Credit Counseling | $15 to $50 | $15 to $50 |
| Debtor Education | $35 to $50 | $35 to $50 |
| Total Estimated Cost | $1,400 to $3,500 | $3,100 to $5,500 |
Chapter 7 vs. Chapter 13: How Each One Works
The two main types of consumer bankruptcy handle debt very differently. Choosing between them comes down to your income, what you own, and what you’re trying to protect.
Chapter 7 Bankruptcy
Chapter 7 is built for people with low income and few assets. It wipes out most unsecured debts (credit cards, medical bills, personal loans) in about four to six months. In exchange, a court-appointed trustee can sell your non-exempt property to pay creditors. Most essentials, like your primary home, one vehicle, retirement accounts, and household goods, are protected by state or federal exemption laws.
Chapter 7 works best for someone with limited income, mostly unsecured debt, and no property they’re at risk of losing.
Chapter 13 Bankruptcy
Chapter 13 is for people with steady income who want to keep their property. Instead of liquidating assets, you commit to a 3 to 5 year repayment plan approved by the court. Your income determines the length: filers earning above their state’s median income usually get a 5 year plan, while those below get 3 years.
The main advantage is that Chapter 13 lets you catch up on missed mortgage or car payments without losing those assets. It also protects co-signers on consumer debts, which Chapter 7 doesn’t.
Chapter 13 works best for someone with regular income, behind on secured debts like a mortgage or car loan, or with assets they’d lose in Chapter 7.
Side-by-Side Comparison
| Factor | Chapter 7 | Chapter 13 |
|---|---|---|
| Best for | Low income, few assets | Steady income, property to protect |
| Timeline | 4 to 6 months | 3 to 5 years |
| Debt handling | Discharges most unsecured debt | Repays debt through court-approved plan |
| Property | Non-exempt assets may be sold | Keep all property if you stick to the plan |
| Credit report impact | 10 years | 7 years |
| Filing fee | $338 | $313 |
| Typical attorney fees | $1,000 to $3,000 | $2,500 to $5,000 |
| Eligibility | Must pass means test | Must have regular income and debts below federal limits |
See also: Should I File Bankruptcy?
Who Qualifies for Bankruptcy?
Eligibility for Chapter 7 or Chapter 13 depends on your income, expenses, and overall financial picture. The key tool is the means test, a formula that compares your income to your state’s median and determines how much you can realistically afford to repay.
How the Means Test Works
The test compares your household income over the last six months to the median income in your state for a household your size. If you fall below the median, you qualify for Chapter 7 automatically. If you’re above it, the test runs a second calculation looking at your disposable income after allowable expenses like housing, food, transportation, and medical costs.
Filers with too much disposable income to pass the means test aren’t locked out of bankruptcy. They’re just steered into Chapter 13, where they’ll repay a portion of their debt over 3 to 5 years instead.
State median income figures update twice a year (in April and November), so check current numbers for your state before filing.
What Counts as Income
The test includes wages, side income, rental income, business income, unemployment benefits, alimony, and most other regular sources. Social Security income is excluded. Recent windfalls like tax refunds or bonuses are included if they fall within the six-month lookback window.
How Eligibility Affects Cost
Chapter 7 costs less overall and ends faster, but you may lose non-exempt property. Chapter 13 costs more in attorney fees and takes years to complete, but you keep your assets as long as you make plan payments on time.
Most filers who can choose Chapter 7 do, simply because it’s faster and cheaper. Chapter 13 is usually the right call when you’re trying to save a house from foreclosure or a car from repossession.
Other Costs You Should Know About
Bankruptcy can come with long-term consequences beyond filing fees and attorney costs. These include potential property loss, credit damage, and emotional stress—each with its own impact on your financial future.
Loss of Property
In Chapter 7, non-exempt assets like a second vehicle, collectibles, or investment property may be sold to pay creditors. Essentials—such as your primary residence, car, or household goods—are often protected by state exemption laws. In Chapter 13, you can typically keep your property as long as you follow the repayment plan.
Credit Score and Borrowing Limits
Bankruptcy will lower your credit score and stay on your credit report for up to 10 years (Chapter 7) or seven years (Chapter 13). During that time, qualifying for loans or credit cards may be harder and come with higher interest rates. That said, rebuilding your credit after bankruptcy is possible with on-time payments and responsible use of credit.
Emotional and Mental Stress
The bankruptcy process can feel stressful, especially if you’re worried about losing assets or dealing with legal steps. If you’re feeling overwhelmed, talk to a financial counselor or someone you trust. Bankruptcy is a reset—not a failure—and can be the first step toward regaining financial control.
Alternatives That Could Cost Less Than Bankruptcy
Bankruptcy isn’t the only way out of serious debt. Depending on how much you owe and what your income looks like, one of these other debt relief options may cost less and do less damage to your credit.
Debt Management Plans
A debt management plan (DMP) is a structured repayment plan set up through a nonprofit credit counseling agency. The agency negotiates lower interest rates and waived fees with your creditors, and you make one monthly payment to the agency, which distributes it. Most DMPs run 3 to 5 years and work best for unsecured debt like credit cards.
- Typical cost: $25 to $75 monthly fee
- Credit impact: Minimal, though accounts in the plan are usually closed
- Best for: People with steady income and mostly credit card debt who can afford to repay in full with lower rates
Debt Settlement
Debt settlement involves negotiating with creditors to accept a lump sum less than what you owe, usually 40 to 60 cents on the dollar. You can do this yourself or hire a debt settlement company. The catch is that settlement typically requires you to stop paying creditors while you save up for the lump sum, which tanks your credit in the process. Creditors aren’t required to agree, and forgiven debt over $600 is usually taxed as income.
- Typical cost: 15 to 25 percent of enrolled debt if using a company
- Credit impact: Severe, comparable to bankruptcy in the short term
- Best for: People with large unsecured debts they can’t repay in full but have access to some lump sum cash
DIY Debt Negotiation
You can call creditors directly and ask for lower interest rates, waived fees, hardship programs, or reduced payoff amounts. This works better than most people expect, especially with credit card companies. It takes time and persistence, but it costs nothing and does the least damage to your credit.
- Typical cost: Free
- Credit impact: Varies by what you negotiate
- Best for: People who owe less than $20,000 and have the patience to work the phones
Debt Consolidation Loans
A debt consolidation loan combines multiple debts into one loan with a single monthly payment, ideally at a lower interest rate. It doesn’t reduce what you owe, just reorganizes it. You need decent credit to qualify for a rate that actually saves you money, and the loan doesn’t fix the spending patterns that got you into debt.
- Typical cost: Origination fees of 1 to 10 percent plus interest
- Credit impact: Minor dip from the hard inquiry, then neutral or positive if you pay on time
- Best for: People with good credit, stable income, and debt they can realistically pay off in 3 to 5 years
How to Choose
The right alternative depends on four things: how much you owe, whether you have income to work with, how much credit damage you can tolerate, and how disciplined you are. Rough guide:
- Under $10,000 in credit card debt with steady income: try DIY negotiation or a DMP first
- $10,000 to $30,000 with good credit: a consolidation loan may save you real money
- Over $30,000 with limited income: bankruptcy is usually cheaper and faster than dragging out settlement for years
Bottom Line
Bankruptcy won’t fix bad habits, but it will stop the bleeding. If you’re choosing between filing and another five years of minimum payments that barely touch the principal, the math usually favors filing.
Chapter 7 gives you the fastest reset, but you may give up non-essential assets to get there. Chapter 13 costs more and takes years, but it lets you protect what you own while catching up on what you owe. Neither is cheap, and neither is the right answer for everyone. If you have steady income and decent credit, a debt management plan or consolidation loan may do the job without the long-term credit hit.
The worst move is waiting. Interest compounds, lawsuits pile up, and options shrink. Whether bankruptcy ends up being the right call or not, talking to a bankruptcy attorney (most offer free consultations) will give you a clear picture of where you actually stand. That’s usually worth more than any article.
Frequently Asked Questions
How long does the whole bankruptcy process take?
Chapter 7 typically takes 4 to 6 months from filing to discharge. Chapter 13 runs 3 to 5 years, since it includes the full repayment plan. Most of that time is passive once your plan is confirmed. You make payments, the trustee distributes them, and you get your discharge at the end.
Can I keep my house and car?
Usually yes, if you’re current on payments and the equity falls within your state’s exemption limits. In Chapter 7, the trustee can sell property with non-exempt equity to pay creditors. In Chapter 13, you keep everything as long as you stick to the plan. If you’re behind on a mortgage or car loan, Chapter 13 is the better option for catching up without losing the asset.
What debts can’t be discharged in bankruptcy?
Most student loans, recent tax debt, child support, alimony, court-ordered restitution, and debts from fraud stick around after bankruptcy. Recent luxury purchases and cash advances made shortly before filing can also be challenged. Bankruptcy is most effective against credit card debt, medical bills, personal loans, and deficiency balances from repossessed property.
Can I make payments on my bankruptcy filing fees?
Yes. Chapter 7 filers can request to pay the $338 fee in up to four installments, or apply for a full waiver if household income is below 150 percent of the federal poverty line. Chapter 13 filers typically roll the $313 fee into their repayment plan.
Will bankruptcy stop wage garnishments and collection calls?
Yes. The moment you file, an automatic stay kicks in that halts nearly all collection activity: wage garnishments, lawsuits, repossessions, foreclosure proceedings, and collector calls. Creditors who keep contacting you after they’ve been notified can face sanctions.
