The cost of filing for bankruptcy in California comes down to three main expenses: the court filing fee, two required financial education courses, and attorney fees. The court filing fee is $338 for Chapter 7 and $313 for Chapter 13. The required courses are usually inexpensive. Attorney fees vary based on the type of case and how complex your finances are, and Chapter 13 fees can often be paid through your repayment plan rather than upfront. Law Offices of Terrence Fantauzzi offers free consultations so you can understand the costs before making any decisions.
What Are the Court Filing Fees for Bankruptcy?
Bankruptcy filing fees are set by federal law, so they are the same in California as they are everywhere else in the country. The current fees are:
- Chapter 7: $338
- Chapter 13: $313
These fees are paid to the bankruptcy court when your case is filed. They do not go to your attorney.
Can the Filing Fee Be Waived or Paid Over Time?
Yes, in some cases. If you are filing Chapter 7 and your household income is below 150% of the federal poverty guidelines, you may be able to ask the court to waive the filing fee entirely if you cannot afford to pay it in installments.
If you do not qualify for a waiver, the court may allow you to pay the filing fee in installments over a few months. In Chapter 13, filing fees and other costs can often be built into your repayment plan.
What Are the Required Bankruptcy Courses?
Every individual who files for bankruptcy must complete two courses from approved providers:
- Credit counseling before you file
- Debtor education, also called a financial management course, before you receive your discharge
These courses can usually be completed online or by phone. Fees vary by provider, but they are typically modest, and many providers reduce or waive fees for people with low incomes.
How Much Do Bankruptcy Attorneys Charge?
Attorney fees vary depending on several factors, including:
- Whether you file Chapter 7 or Chapter 13
- How many creditors and assets you have
- Whether you own a business or have business debts
- Whether you are facing foreclosure, lawsuits, or garnishments that need immediate attention
- Whether any complications, such as disputes with creditors, come up during the case
Chapter 7 cases are generally shorter and less expensive. Attorney fees for a Chapter 7 case are usually paid before filing, because most debts owed to an attorney before filing would otherwise be discharged.
Chapter 13 cases last three to five years and require more work, so attorney fees are generally higher. However, they are often more manageable because only part of the fee is due upfront. The rest can typically be paid through your Chapter 13 bankruptcy plan over time.
Is Chapter 7 or Chapter 13 Cheaper?
Chapter 7 usually costs less overall because the case is shorter and simpler. Many people who qualify can complete Chapter 7 bankruptcy in a matter of months.
Chapter 13 often costs more in total, but it can be easier to afford because fees are spread out over the life of the plan. For people who need to catch up on a mortgage, protect property, or address tax debt, Chapter 13 may provide more value despite the higher cost.
The right choice depends on your goals and eligibility, not just the price.
Are There Other Costs to Consider?
Beyond the main expenses, some filers may encounter smaller costs, such as:
- Obtaining copies of credit reports
- Gathering tax returns or financial records
- Fees for amending paperwork if new information comes up
- Costs related to valuing property, such as an appraisal
Your attorney can tell you in advance which of these may apply to your case.
Is It Worth Paying for a Bankruptcy Attorney?
You are allowed to file bankruptcy on your own, but mistakes can be costly. Errors in your paperwork, choosing the wrong exemptions, or missing deadlines can lead to losing property, having your case dismissed, or not receiving a discharge.
An experienced attorney can help you:
- Choose the right chapter for your situation
- Protect as much of your property as possible
- Time your filing to your advantage
- Handle communication with the trustee and creditors
- Avoid problems that could put your discharge at risk
For many people, the cost of an attorney is small compared to the debt relief they receive and the mistakes they avoid.
How Can You Find Out What Your Case Will Cost?
The best way to understand your total cost is to talk with a bankruptcy attorney about your specific situation. A consultation lets you review your debts, income, and goals, and learn which options may be available and what each would cost.
Talk to a California Bankruptcy Attorney About Your Options
Worrying about the cost of bankruptcy should not keep you stuck in debt. Many people are surprised to find that filing is more affordable than continuing to make payments they cannot keep up with.
To schedule a free consultation, contact Law Offices of Terrence Fantauzzi at (909) 552-1238 today.
