Bankruptcy Cost


There are 3 different chapters individuals debtors may file under: Chapter 7 Liquidation, Chapter 11 Reorganization, and Chapter 13 Reorganization.

In order to change a Chapter 13 into a Chapter 7 bankruptcy case there's a 25 Dollars Conversion Fee.

Chapter 7 cases are 65% of all consumer bankruptcy filings in the US.

According to the National Bureau of Economic Research, it is estimated that between 200,000 and 1 million consumers in the United States are unable to come up with the 1,500 to 2,500 Dollars average cost to pay for the bankruptcy protection’s filing and lawyer fees this year.

Bankruptcy cases are usually completed within 4 to 6 months of filing it.

How much is the cost of bankruptcy in America?

The cost for filing a Chapter 7 and Chapter 13 bankruptcy vary from state to state due to filling fees, legal fees and bankruptcy types.

COURT FILING FEES effective October 1, 2008 - Most States

Chapter 7 = $299.00. Basic liquidation for business and individuals. (the simplest and quickest form available).
Chapter 9 = $1039.00. For the resolution of municipal debts.
Chapter 11 = $1,039.00. Known as corporate bankruptcy. Reorganization allows companies (or individuals with substantial debts and assets) to follow debt repayment plans
Chapter 12 = $239.00. Family farmers and fishermen.
Chapter 13 = $274.00. Known as Wage-Earner Bankruptcy. Reorganization allows with a regular source of income to create a debt repayment plan.
Chapter 15 = $1039.00. International cases. Helps foreign debtors to pay off debts.
Adversary Proceeding - Unless filed by debtor in Chapter 7 or 13 = $250.00


Legal Fees for Chapter 7 and 13 can cost from $1,000 to $3,000 or more. Other Chapters can cost substantially higher.

Some attorneys and law firms charge extra for obtaining credit reports, the credit counseling certificate, long distance phone calls, postage, mileage, parking, or some other expenses.

Always make sure that you'll be paying a FLAT FEE for the legal service. Also, ask if you can make payments if needed.

Most common reasons people are filling for bankruptcy nowadays:

  • Divorce
  • Wage Garnishment
  • Unpaid Back Taxes
  • Disability
  • Illness/Hospital Bills
  • Creditor Harassment
  • Auto/Property repossession
  • Home Foreclosure
  • Lawsuits
  • Driver’s License Suspension
  • DUI Charge
  • Loss of Job/Income/Business

Most common bills people have that are responsible for filling for bankruptcy nowadays:

  • Credit/Store Cards
  • Divorce/Alimony Payments
  • Child Support
  • Medical Bills
  • Auto Loans
  • Personal Loans
  • Payday Loans
  • Student Loans
  • IRS Bills/Income Taxes

Types of income: Full-time Employment, Part-time Employment, Social Security Benefits, Pension/Retirement Benefits, Child Support/Maintenance, Alimony Payments, Unemployment Benefits

Here are some of the largest bankruptcy fees ever charged:

The largest bankruptcy fees ever paid in America is about 2 Billion Dollars for the Lehman’s $613 billion debt.

Enron Corp.’s $65.5 billion debt paid $757 Million in bankruptcy cost.

City of Detroit 18 Billion restructuring debt tab, which are believed to reach over 200 Million Dollars. The largest tabs are from the city's lead bankruptcy firm Jones Day, which billed $52.3 million, Conway MacKenzie billed $17.2 million, Ernst & Young billed about $20 million, the investment banking firm Miller Buckfire billed $6.2 million. Also, the city's actuarial consultant Milliman billed more than $2 million.

Detroit's fee surpasses the 120 Million bankruptcy fees paid by GM in 2009.

Return to top of this page

Return from bankruptcy cost to Home page.

DISCLAIMER: The law will vary depending on your state, jurisdiction and the specifics of your case. The information provided by is intended for educational purposes only. The content on this site should NOT be considered professional legal advice or a substitute for professional legal advice. For such services, we recommend getting a free initial consultation by a licensed Attorney in your state.

bankruptcy cost
Copyright © 2020 - bankruptcy cost - All Rights Reserved.

free page hit counter