If you’re considering bankruptcy, one of the biggest concerns is:

“How am I supposed to pay for this when I’m already broke?”

It’s a fair question. Let’s walk through the most common questions about bankruptcy costs and payment options.

💰 How Much Does Bankruptcy Cost?

Costs vary depending on the chapter filed and complexity of the case.

Chapter 7

• Court filing fee: $338
• Credit counseling courses: $20–$50 each
• Attorney fees: Typically $1,500–$3,500 (varies by case and location)

Chapter 13

• Court filing fee: $313
• Credit counseling courses: $20–$50 each
• Attorney fees: Often $3,000–$6,000
• A large portion of attorney fees can usually be paid through the repayment plan

Every case is different. Complexity, assets, lawsuits, and business ownership can affect fees.

❓ Why Do Chapter 7 Fees Usually Have to Be Paid Upfront?

In Chapter 7, any unpaid legal fees owed before filing become dischargeable debt.

That means:

• If you still owe your attorney money when you file, that balance could legally be wiped out.
• Attorneys cannot ethically continue working on discharged debt.

That’s why most Chapter 7 attorneys require payment before filing.

💳 Can I Use a Credit Card to Pay My Attorney?

Usually no — at least not if the card will be included in the bankruptcy.

Charging attorney fees right before filing can lead to:

• Fraud allegations
• Non-dischargeable debt
• Litigation by the credit card company

If the card will not be included in your bankruptcy, it may be possible — but this must be analyzed carefully.

👨‍👩‍👧 Can I Borrow Money From Family?

Yes — in many cases you can.

But:

• The loan must be disclosed.
• You should not repay family before filing without legal advice.
• Repayment before filing can create preference issues.

Transparency is essential.

🧾 What Is a Bifurcated Fee Agreement?

A bifurcated agreement splits fees into two parts:

• A smaller fee paid before filing.
• A second agreement for post-filing services paid over time.

This can make Chapter 7 more accessible for people who cannot afford the full amount upfront.

However:

• Total cost may be higher.
• Not all courts allow it.
• Terms must be reviewed carefully.

📅 Can I Make Payments Before Filing?

Yes. Many firms offer pre-filing payment plans.

The case is filed once the agreed fee is paid in full (for traditional Chapter 7).

This allows clients to prepare while staying compliant.

🏦 Why Is Chapter 13 Different?

Chapter 13 allows attorney fees to be paid through the 3–5 year repayment plan.

Typically:

• A small portion is paid upfront.
• The rest is included in the plan payments.

This makes Chapter 13 more manageable for people who need immediate protection but cannot afford full fees upfront.

⚖️ Is Filing Without an Attorney Cheaper?

Filing “pro se” avoids attorney fees — but it carries risk.

Common issues include:

• Losing property due to incorrect exemptions
• Dismissed cases
• Denied discharges
• Procedural errors
• Trustee objections

Fixing mistakes can cost far more than hiring counsel from the start.

Comparison Chart: Bankruptcy Payment Options

What’s the Safest Way to Pay?

The safest payment method is:

• Transparent
• Fully disclosed
• Structured in compliance with bankruptcy law
• Approved by your attorney

The worst approach is hiding transactions or trying to “get creative” without legal advice.

The Bigger Perspective

If bankruptcy eliminates:

• $20,000
• $50,000
• $100,000+

The filing cost is often small compared to the long-term financial relief.

The real goal isn’t just filing.

It’s filing correctly — and protecting your fresh start.

Final Thoughts

If cost is the only thing stopping you from filing, talk to an experienced bankruptcy attorney about:

• Payment plan options
• Chapter comparison
• Timing strategies
• Whether bankruptcy is even necessary

There are often more solutions than people realize.