How much will it cost to file for bankruptcy protection?

The cost of filing bankruptcy differs depending on which bankruptcy chapter individuals are filing. For instance, chapter 13 is the bankruptcy chapter which allows people to back creditors in three to five years through a repayment plan. As of 2010, the U.S. Bankruptcy Courts charge a $235 case filing fee. In addition, they also charge a miscellaneous administrative fee. As of 2010, that fee was $39. Typically, the case filing fee and the miscellaneous administrative fee should be paid when filing the chapter 13 petition. However, the U.S. Bankruptcy Courts do allow individuals to pay in four installments. The last installment must be paid at least 180 days after filing the chapter 13 bankruptcy petitions.

Chapter 7 allows individuals to wipe out most unsecured debts, such as medical bills, without paying creditors back. Unlike chapter 13, this bankruptcy chapter has three fees. As of 2010, the U.S. Bankruptcy Courts charge a case filing fee of $245 and $39 miscellaneous administrative fee. In addition, there is also a $15 trustee surcharge. Individuals filing their chapter 7 petition are allowed to pay in four installments too. However, people with an income less than 150 percent of the poverty level and who aren’t able to pay can have their fees waived by the U.S. Bankruptcy Courts.

Before filing bankruptcy, check with a bankruptcy lawyer about the process and meeting eligibility requirements. For people needing a chapter 7 fee waiver, a bankruptcy lawyer will tell them what type of information is required.