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Bankruptcy Cost: Chapter 7 vs Chapter 13 Explained 2026
⏱️ 7 min read · Last updated: 2026
- Average Chapter 7 attorney fees: $1,000–$1,500 as of 2026
- Average Chapter 13 attorney fees: $2,500–$3,500
- Court filing fee for both: $338 non-waivable
- Fee waivers available for those below 150% of the poverty line
- Chapter 13 includes a trustee fee of approximately 5% of payments
A friend once asked me, “Why is Chapter 13 bankruptcy so much more expensive than Chapter 7?” This question arises because bankruptcy costs are not just about the numbers; they involve understanding different processes. The cost differences between Chapter 7 and Chapter 13 bankruptcy are significant, and choosing the right one is a decision deeply tied to your unique financial situation.
When I filed for Chapter 7 a few years ago, the process was straightforward, involving a simpler liquidation of assets. However, my colleague who chose Chapter 13 faced a more intricate repayment plan, which explained the higher costs. Let’s delve into these differences, explore the hidden costs, and help you make the best decision for your financial future.
Chapter 7 vs Chapter 13: Which Costs More?
Chapter 7 bankruptcy generally costs less upfront than Chapter 13. In 2026, Chapter 7’s cost is mainly driven by attorney fees, ranging from $1,000 to $1,500. Add the $338 filing fee, and you’re looking at a total of around $1,500 to $2,500.
Chapter 13, however, is more complex due to the repayment plan structure. Attorney fees here average between $2,500 and $3,500, with the same $338 filing fee. Additionally, there’s a trustee fee of about 5% of your plan payments. This complexity makes Chapter 13 costlier, from $3,000 to $4,000 typically.
Choosing between Chapter 7 and Chapter 13 requires considering your financial goals. Chapter 7 is faster and cheaper, but Chapter 13 provides a structured repayment plan that can save assets like your home.
Can I Afford Bankruptcy with No Money Left?
Even if you’re strapped for cash, you might still afford bankruptcy through several options. Both chapters allow for payment plans with attorneys, spreading the cost over several months. Furthermore, if your income is below 150% of the poverty line, you may qualify for a bankruptcy fee waiver on the filing fee.
Some nonprofit legal services may offer pro bono assistance for Chapter 7 cases. It’s essential to explore these options to ensure costs don’t stand in the way of necessary debt relief.
Chapter 7 Bankruptcy: The Choice for Simplicity
Chapter 7 bankruptcy is often the best choice for those seeking a straightforward process. This option suits individuals with limited income and assets that aren’t worth protecting.
The attorney fees are more affordable and, since there’s no repayment plan, you avoid the trustee fees associated with Chapter 13. However, it requires that your income is low enough to pass the means test.
For those looking to wipe out unsecured debt like credit cards and medical bills without a lengthy commitment, Chapter 7 is ideal.
Chapter 13 Bankruptcy: When It’s Worth the Cost
When preserving assets like your home or car is crucial, Chapter 13 bankruptcy becomes worth the higher cost. This option is for those with a regular income, as it involves a three to five-year repayment plan to catch up on secured debts.
While the attorney fees and trustee charges are higher, Chapter 13 allows you to reorganize debts without losing significant assets. This flexibility makes Chapter 13 suitable for those with assets to protect and some disposable income.
Real Cost Comparison Table
| Criteria | Chapter 7 | Chapter 13 | Winner for |
|---|---|---|---|
| Attorney Fees | $1,000–$1,500 | $2,500–$3,500 | Lower Cost |
| Filing Fee | $338 | $338 | N/A |
| Trustee Fees | None | 5% of Plan | No Additional Fees |
| Process Duration | 3–6 Months | 3–5 Years | Quick Resolution |
| Asset Protection | Limited | High | Keeping Assets |
| Credit Impact | 7–10 Years | 7 Years | Shorter Impact |
Exceptions to Consider
There are instances where the typical choice between Chapter 7 and Chapter 13 might flip. For example, if you have significant assets you wish to protect, Chapter 13 might be the better option even at a higher cost.
Similarly, if you’re facing foreclosure, Chapter 13 can provide a lifeline by allowing you to catch up on missed mortgage payments. If your income is irregular but you anticipate stability, Chapter 13’s structured plan might work better.
However, for those with primarily unsecured debts, Chapter 7 remains the more straightforward and less costly option. Your financial goals and constraints should guide your choice.
The Bottom Line
Choose Chapter 7 bankruptcy if you need a quick, affordable solution to clear unsecured debts and meet the means test. Opt for Chapter 13 if preserving assets like your home is critical and you have a steady income to support a repayment plan.
Explore more on Understanding Debt Relief Costs, Fees & What You Actually Pay for further insights.
- Chapter 7 is cheaper but requires passing a means test.
- Chapter 13 is costlier but protects assets through a repayment plan.
- Fee waivers and payment plans can make bankruptcy more accessible.
- Consider your long-term financial goals when choosing.
Common Questions About bankruptcy cost chapter 7 vs chapter 13
What does bankruptcy cost total?
Bankruptcy costs vary: Chapter 7 typically ranges from $1,500 to $2,500, while Chapter 13 costs between $3,000 and $4,000. These figures include attorney fees, filing fees, and, for Chapter 13, trustee fees.
How to file bankruptcy if I can’t afford the fees?
If you can’t afford bankruptcy fees, consider applying for a fee waiver, available if your income is below 150% of the poverty line. Additionally, seek pro bono legal assistance or negotiate a payment plan with your attorney.
Chapter 7 vs Chapter 13 cost — which is cheaper?
Chapter 7 is generally cheaper, costing $1,500 to $2,500, compared to Chapter 13, which is $3,000 to $4,000. The difference is mainly due to attorney and trustee fees associated with Chapter 13’s repayment plans.
Why does Chapter 13 cost more than Chapter 7?
Chapter 13 costs more due to its complex repayment plans requiring higher attorney fees and trustee fees. The process involves a detailed plan over three to five years, unlike the quicker Chapter 7 process.
How much is the bankruptcy court filing fee in 2026?
The bankruptcy court filing fee in 2026 is $338, applicable to both Chapter 7 and Chapter 13 filings. This fee is standard and non-waivable but may be covered by a fee waiver for eligible individuals.
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