How much is bankruptcy chapter 7?

How much is bankruptcy chapter 7?

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Bankruptcy Chapter 7 is a legal process that provides individuals and businesses with a fresh start by eliminating most of their debts. This article will delve into the details of how much it costs to file for Chapter 7 bankruptcy and the factors that can influence the overall expenses.

Filing Fees and Attorney Costs

Filing fees: When filing for Chapter 7 bankruptcy, there are certain fees that need to be paid. As of 2021, the filing fee for Chapter 7 bankruptcy is $335. This fee is set by the United States Courts and is non-negotiable. It is important to note that this fee may change over time, so it is advisable to check the latest fee schedule before filing.

Attorney costs: Hiring an attorney is highly recommended when filing for Chapter 7 bankruptcy. While it is possible to file without legal representation, the complex nature of bankruptcy law makes it challenging for individuals to navigate the process on their own. The cost of hiring an attorney can vary depending on various factors, such as the complexity of the case, the attorney’s experience, and the location. On average, attorney fees for Chapter 7 bankruptcy can range from $1,000 to $3,500.

Means Test

Means test: To qualify for Chapter 7 bankruptcy, individuals must pass the means test. This test compares their income to the median income in their state. If their income falls below the median, they automatically qualify for Chapter 7. However, if their income is above the median, they may still be eligible based on their disposable income after deducting certain expenses.

Means test calculation: The means test calculation can be complex, taking into account various factors such as household size, secured debt payments, and allowable expenses. It is advisable to consult with a bankruptcy attorney to accurately calculate the means test and determine eligibility.


Exemptions: Chapter 7 bankruptcy allows individuals to keep certain assets through exemptions. Exemptions protect property from being liquidated to repay creditors. The types and amounts of exemptions vary by state, and it is essential to understand the exemptions applicable in your jurisdiction.

Homestead exemption: One of the most common exemptions is the homestead exemption, which protects a certain amount of equity in a primary residence. The amount varies by state, and some states have more generous exemptions than others.

Additional Costs

Credit counseling and debtor education: Before filing for Chapter 7 bankruptcy, individuals are required to complete credit counseling and debtor education courses. These courses aim to provide financial education and help individuals understand the implications of bankruptcy. The cost of these courses can range from $20 to $100.

Additional legal fees: In some cases, additional legal fees may arise during the Chapter 7 bankruptcy process. These fees can include representation in adversary proceedings, which are lawsuits filed within the bankruptcy case, or any other legal services required to address specific issues that may arise.


Filing for Chapter 7 bankruptcy incurs various costs, including filing fees, attorney fees, credit counseling, and debtor education fees. The total cost can vary depending on individual circumstances, such as the complexity of the case and the location. It is crucial to consult with a bankruptcy attorney to understand the specific costs involved and ensure a smooth bankruptcy process.


– United States Courts:
– American Bankruptcy Institute:
– National Association of Consumer Bankruptcy Attorneys:

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