What Is the Number One Cost of Bankruptcy? Breaking Down the Biggest Expense

Why the Number One Cost of Bankruptcy Matters

What is the number one cost of bankruptcy is a common concern for many people considering filing, especially when even a few hundred dollars feels out of reach. If you’re overwhelmed by debt, the idea of spending money to get relief can feel counterintuitive. Naturally, one of the biggest questions is what expense to expect first—and how to manage it effectively.

The answer? In most cases, it’s attorney fees. But while attorney costs are often the largest single expense, they’re just one part of the total financial and emotional equation. Understanding what bankruptcy truly costs—and how to manage it—can help you make the right decision with confidence.

Understanding the Financial Side of Bankruptcy

Before we look at the number one cost of bankruptcy, let’s quickly review the basic fees involved in a typical case. Whether you’re filing Chapter 7 or Chapter 13, there are required costs that every filer must account for.

Common Bankruptcy Costs:

Court Filing Fee

• Chapter 7: $338
• Chapter 13: $313

This fee goes directly to the bankruptcy court and is required when you file. In some cases, you may qualify to pay in installments or request a waiver based on income.

Credit Counseling & Debtor Education

• Required by law before and after filing
• Usually costs between $20 and $50 per course
• Offered by court-approved online providers

Attorney Fees

• Chapter 7: Often $1,000–$2,500
• Chapter 13: Can range from $3,000–$4,500 (paid over time through your repayment plan)

Of these, attorney fees are almost always the number one cost of bankruptcy—but they also offer the most value.

What Is the True “Number One” Cost of Bankruptcy?

When people ask what is the number one cost of bankruptcy, they’re typically referring to the biggest upfront or total expense. In most cases, that cost is the attorney fee.

Hiring a bankruptcy attorney may seem expensive at first, but it’s often one of the most worthwhile investments in the process.

Why Attorney Fees Are the Largest Cost:

• Bankruptcy law is complex—mistakes can lead to dismissed cases or lost assets
• Attorneys handle all paperwork, deadlines, and court communication
• They help you protect your home, car, and property using the correct exemptions
• In Chapter 13, they create and negotiate your repayment plan
• They represent you in the Meeting of Creditors and other court matters

Without legal guidance, filing on your own can be risky—and may cost more in the long run if your case is delayed, denied, or improperly filed.

Emotional and Opportunity Costs

While attorney fees are the largest financial cost, they aren’t the only cost of bankruptcy.

Emotional Costs:

• Filing bankruptcy is stressful—it can stir up feelings of failure or fear
• There’s still social stigma around bankruptcy, despite being a legal and responsible option
• Many people delay filing for months or years due to guilt or anxiety

Opportunity Costs:

• Waiting too long to file can lead to lawsuits, wage garnishment, and asset loss
• Debt balances can continue to grow due to interest and late fees
• You might drain retirement savings or take out high-interest loans to stay afloat, only to file later anyway

Sometimes, the cost of not filing is greater than the cost of filing—especially if bankruptcy could have provided protection and relief sooner.

How to Make Bankruptcy More Affordable

If attorney fees are your biggest concern, the good news is that many bankruptcy lawyers understand your situation—and offer solutions to help.

Options That Make Bankruptcy More Manageable:

• Payment Plans: Many Chapter 7 attorneys offer installment plans or split-fee options
• Pro Bono or Legal Aid: Low-income filers may qualify for free legal help from nonprofit organizations
• Flat Fees: Most bankruptcy attorneys charge a flat rate so you know what to expect
• Fee Waivers: The court may waive your filing fee if you meet strict income guidelines
• Post-Filing Payments: In Chapter 13, legal fees are usually included in your repayment plan and spread over 3–5 years

It’s always worth calling a few local attorneys and asking about payment options. Most offer free consultations and will explain your choices upfront.

What Is the Number One Cost of Bankruptcy and Why It’s Worth It

If you’ve been asking what is the number one cost of bankruptcy, the answer is clear: attorney fees are typically the highest single expense. But they also provide the greatest value. From protecting your assets to ensuring your case moves forward without delay, an experienced bankruptcy attorney can make the process smoother, faster, and far more effective.

While emotional and opportunity costs are real, delaying action can often lead to worse outcomes—like wage garnishments, lawsuits, or financial collapse. Filing with the right support can offer peace of mind, legal protection, and the chance to start fresh.

Need Help Navigating Bankruptcy Costs? Speak with a Legal Expert Today

Still unsure about what is the number one cost of bankruptcy—and whether it’s worth the investment? Legal Brand Marketing connects individuals with knowledgeable bankruptcy attorneys who offer flexible payment options, transparent pricing, and proven guidance through every step of the process.

Don’t let cost stop you from getting relief—schedule a free consultation today and find out how bankruptcy can work for your situation.