How Much Does It Cost To File Chapter 7 Bankruptcy?
Updated on 16 February 2026
Last month, a client came to us carrying a folder thick with collection letters. She owed roughly $42,000 in credit cards and medical bills. What kept her from filing sooner was not eligibility. It was the assumption that bankruptcy itself would be financially out of reach.
That hesitation is common. Many people believe that if they cannot pay their creditors, they cannot possibly afford bankruptcy. The reality is more structured than that assumption suggests, particularly when filing for bankruptcy becomes part of a long-term financial reset rather than a last-minute reaction.
The Court Filing Fee: A Fixed Federal Cost
The first unavoidable expense in a Chapter 7 case is the federal filing fee. As of 2025, that fee is $338. It is uniform nationwide because it is set by the federal judiciary. Whether someone files in Florida, Illinois, or Arizona, the court fee remains the same.
For individuals whose income falls well below federal poverty guidelines, the court may approve a fee waiver. In other cases, installment payments are allowed. While $338 is not insignificant, it is often less than a single month of minimum payments across multiple credit cards.
When viewed against $30,000, $50,000, or $70,000 in unsecured debt, the court cost becomes part of a larger financial calculation rather than an isolated burden.
Attorney Fees and Why They Vary
Attorney fees are where most of the variation appears. A straightforward Chapter 7 case involving steady wage income, no business ownership, and limited assets generally falls within a predictable range nationally, often between $1,200 and $2,500 depending on geographic region and local practice norms.
More complicated financial histories require deeper analysis. If someone recently transferred property, repaid a family member, cashed out retirement funds, or accumulated significant credit card charges shortly before filing, those actions may require careful legal review because trustees are obligated to examine pre-filing financial behavior.
The difference in cost is not about filling out forms. It is about evaluating risk, applying exemption strategy, and ensuring compliance with federal bankruptcy law. Errors can result in delays, objections, or even dismissal. For that reason, attorney fees reflect both preparation and protection.
The Required Courses: Small but Mandatory Expenses
Federal law requires two education courses in every Chapter 7 case. The first, credit counseling, must be completed within 180 days before filing. The second, debtor education, must be completed before the discharge is entered.
Most approved providers charge between $20 and $50 per course. Fee reductions are often available for low-income filers. While these amounts are modest compared to attorney fees, they are mandatory and cannot be overlooked.
Failure to complete the second course can delay discharge, which is why we ensure clients complete both requirements on time.
What Most People Misunderstand About “Liquidation”?
The term “liquidation bankruptcy” creates unnecessary fear. Statistically, most Chapter 7 cases filed by individuals are no-asset cases, meaning the trustee does not sell property for creditor distribution. Federal and state exemption laws protect essential assets, including retirement accounts and reasonable equity in vehicles and homes.
Medical debt, in particular, often raises anxiety. Many clients ask us directly, does bankruptcy clear medical debt? In most Chapter 7 cases, the answer is yes. Unsecured medical bills are generally dischargeable, which is why medical debt bankruptcy has become one of the most common reasons individuals seek relief under Chapter 7.
For example, if a client undergoes emergency surgery and accrues $25,000 in uncovered hospital expenses, those bills typically qualify for discharge alongside credit card balances and personal loans. The bankruptcy system treats unsecured medical debt no differently from other qualifying unsecured obligations.
According to data from the American Bankruptcy Institute, hundreds of thousands of Chapter 7 cases are filed each year, and a substantial percentage involve medical-related financial distress. The system is designed to eliminate unsecured debt when the debtor qualifies under the means test.
Comparing Chapter 7 and Chapter 13 Costs
The filing fee for Chapter 13 bankruptcy is slightly lower at $313. However, Chapter 13 involves a three- to five-year repayment plan and extended court oversight. While the initial filing fee is lower, the long-term cost is often higher because payments continue under court supervision and attorney involvement spans several years.
Chapter 7, by contrast, typically concludes within a few months. For individuals who qualify under the means test, it provides a faster resolution of unsecured debt without the prolonged financial structure required under Chapter 13.
Looking at Cost in Context
At DebtStoppers, we approach cost discussions as part of a broader financial strategy. The relevant comparison is not between filing and doing nothing. It is between structured legal relief and the ongoing cost of high-interest debt.
Many of the individuals we represent are facing potential lawsuits, wage garnishment exposure, or interest rates exceeding 20 percent. Continuing to service unsecured debt under those conditions often results in years of payments with minimal principal reduction.
When viewed in that context, the cost of filing for bankruptcy under Chapter 7 includes the $338 court fee, required course fees, and attorney representation tailored to the complexity of the case. For someone carrying substantial unsecured debt, that cost frequently represents a defined endpoint rather than the beginning of another cycle of payments.
For many clients, the decision ultimately shifts from asking whether bankruptcy is affordable to asking whether remaining in unmanageable debt is sustainable.
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By Patrick Semrad | Published April 04 2025 | Posted in Illinois Georgia Texas
What Is Chapter 7 Bankruptcy and Who Qualifies?
When people consider Chapter 7, the decision rarely begins with a legal definition. It usually begins with exhaustion. Payments have been made for months or years, balances barely move, and interest continues to accumulate. At that point, Chapter 7 becomes less of a theory and more of a practical option.
Eligibility depends on income and timing. Federal law prevents someone from receiving a new Chapter 7 discharge within eight years of a prior one. Beyond that, the court evaluates whether income fits within statutory guidelines designed to reserve Chapter 7 for those without meaningful repayment capacity.
In recent years, we have seen a noticeable increase in cases where healthcare costs are the tipping point. What begins as manageable credit card debt becomes unsustainable after surgery, hospitalization, or chronic treatment expenses. That is when conversations about medical debt bankruptcy often begin, not because someone mismanaged finances, but because unexpected medical costs altered the equation entirely.
The Means Test and Eligibility Requirements
The means test measures average income over the six months before filing and compares it to the median income in your state. Falling below the median generally clears the first hurdle. Exceeding it does not automatically disqualify you; it simply triggers a more detailed calculation.
That deeper analysis accounts for secured debt payments, tax obligations, and standardized living expenses recognized under federal guidelines. We frequently see situations where gross income appears high enough to disqualify someone, yet after allowable deductions are applied, qualification remains possible.
The means test is not about whether someone feels financially strained. It is about whether the numbers, calculated under federal formula, demonstrate an inability to repay unsecured debt.
What Debts Can Be Discharged, Including Medical Debt
Chapter 7 is primarily structured to eliminate unsecured obligations. Credit cards, personal loans, collection accounts, and hospital bills typically fall within that category.
Clients often ask, sometimes very directly, does bankruptcy clear medical debt. In most standard Chapter 7 cases, unsecured medical bills are dischargeable just like credit card balances. That reality is one reason healthcare-related obligations appear so frequently in bankruptcy filings nationwide.
Medical expenses can escalate quickly. A single emergency room visit or surgical procedure can generate bills that exceed what many families earn in a month. When those balances are unsecured, Chapter 7 generally treats them the same way it treats other qualifying unsecured debt.
Certain obligations remain outside the discharge framework. Domestic support obligations, most recent tax debts, and most student loans continue to be enforceable under federal law. Understanding those boundaries is critical before filing for bankruptcy, because the objective is realistic relief, not assumption.
Filing for Bankruptcy: Required Steps and Court Fees
The process of filing for bankruptcy is more procedural than dramatic. It begins with detailed financial disclosure. The petition includes schedules listing income sources, monthly expenses, assets, debts, and recent financial transactions. Everything is signed under penalty of perjury.
Once the case is filed, the automatic stay takes effect immediately. Collection lawsuits pause. Wage garnishments stop. Most creditor communications must cease. For many people, that immediate legal protection provides stability long before discharge is entered.
A trustee is assigned to review the case and conduct a meeting of creditors. In typical consumer filings, that meeting is brief and administrative, focusing on confirming information rather than challenging it.
The $338 federal filing fee initiates the case. Courts may allow installment payments depending on financial circumstances, but the amount itself does not vary by state.
Mandatory Credit Counseling and Debtor Education Costs
Before filing, a credit counselling session from an approved provider must be completed. After filing, a debtor education course is required before discharge.
These courses generally cost between $20 and $50 each. While modest in price, they are statutory requirements. Failure to complete the post-filing course can delay entry of discharge.
Chapter 7 Filing Fee vs Chapter 13 Filing Fee
We sometimes hear clients say, “Chapter 13 is cheaper, right? The filing fee is lower.” On paper, that is technically true. Chapter 13’s filing fee is $313, compared to Chapter 7’s $338. But in practice, the filing fee rarely drives the decision.
Chapter 13 means committing to a court-approved repayment plan that lasts three to five years. During that time, payments are made to a trustee every month. If income fluctuates, if unexpected expenses arise, or if employment changes, the plan may need modification. It is a long structure that requires consistency over years, not months.
Chapter 7 does not operate on that timeline. Once the petition is filed and the required steps are completed, most consumer cases move toward discharge relatively quickly. There is no extended repayment framework attached to unsecured debt. For someone who does not need to catch up on a mortgage or restructure secured loans, the difference between a few months and several years can feel significant.
In other words, the comparison is less about a $25 filing fee gap and more about how long someone wants their financial life under court supervision.
How Much Does It Cost to File Chapter 7 Bankruptcy in 2026?
When people ask about cost in 2025, they are usually asking a deeper question: “Is this manageable?”
The court filing fee remains $338. The required education courses add modest additional expense. Attorney fees depend on how complicated the financial history is and how much review is required before submitting sworn documents to the court.
But numbers alone rarely tell the whole story.
We recently met with someone who had been paying minimum balances on credit cards for nearly four years. She had not missed a payment. Yet her total balance had dropped by less than $3,000 because interest consumed most of what she sent each month. From a purely mathematical standpoint, continuing that path would have required many more years of payments.
Against that reality, the cost of Chapter 7 looked different. It was finite. It had a beginning and an end.
For individuals facing substantial unsecured debt, particularly when medical bills or job interruptions disrupted stability, the relevant question is not only “What does it cost?” It is also “How long will this continue if nothing changes?”
Sometimes the clarity of a defined legal process outweighs the uncertainty of indefinite repayment.
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