How Much Is It to File Chapter 7 Bankruptcy?
Helping You Rebuild Financial Freedom
Breaking down Chapter 7 bankruptcy fees
The cost of filing bankruptcy in Atlanta depends on the chapter filed, court fees, attorney fees, and required education expenses.
For most individuals, understanding the total cost is just as important as choosing the right Atlanta bankruptcy attorney.
This guide explains what you can expect to pay when filing for Chapter 7 or Chapter 13 bankruptcy in Georgia, what those fees cover, and what factors influence the final amount.
The Cost of Filing for Bankruptcy
When considering filing for Bankruptcy in Georgia, the filing fee is not the only cost you will incur. Overall, bankruptcy costs include:
- Filing fees
- Fees for obtaining credit reports (some attorneys include this in their fee; others charge separately)
- Charges to attend mandatory credit counseling and debtor education courses
- Attorneys fees
Before filing the bankruptcy petition with the court, you must complete a mandatory credit counseling course. A credit counselor will assess your finances and goals, provide you with an overview of the different forms of debt relief, and help you determine which solution is right for you.
To file for bankruptcy in Georgia, a debtor or their attorney must complete all relevant national bankruptcy forms required under federal law. In Atlanta, you will also need to submit certain local forms depending on your district. Atlanta is in the Northern District.
Once the bankruptcy forms are filed, an Automatic Stay prevents any creditor actions. Wage garnishment, foreclosure, repossession, and other credit actions will cease.
The mandatory 341 meeting of creditors is held between the bankruptcy filer, the bankruptcy trustee, and, sometimes, the creditors. It’s an informal hearing. The purpose of the meeting is for the trustee to verify the bankruptcy filer’s identity and for the trustee and any interest creditors to ask questions about the information in your bankruptcy petition. Your bankruptcy attorney may attend, but you must answer the questions.
You must complete a debtor education course within 60 days of the 341 meeting to receive your Georgia bankruptcy discharge. This is a financial management course.
How the Type of Bankruptcy Affects the Cost
The cost of filing bankruptcy in Atlanta depends largely on whether you file under Chapter 7 or Chapter 13.
Chapter 7 is generally less expensive upfront. It is shorter in duration, requires less ongoing administration, and typically involves fewer court appearances. Because it is designed to discharge unsecured debt quickly, attorney involvement is concentrated at the beginning of the case.
Chapter 13, by contrast, is a multi-year repayment plan. It requires drafting a court-approved payment plan, working with a trustee for 3 to 5 years, and handling ongoing compliance requirements. That longer involvement increases legal fees and administrative complexity.
In short:
- Chapter 7 costs less but requires full payment to the attorney before filing.
- Chapter 13 costs more overall but allows some attorney fees to be paid over time through the repayment plan.
Below is a detailed breakdown of each chapter’s costs:
Court Filing Fees
Bankruptcy filing fees are set by federal law and paid to the U.S. Bankruptcy Court.
- Chapter 7: $338
- Chapter 13: $313
Chapter 7 filers may qualify for fee waivers in limited low-income situations. Chapter 13 filers typically cannot waive the fee but may request installment payments.
The difference here is minimal. Filing fees do not drive overall cost.
Mandatory Credit Counseling and Debtor Education
Both chapters require:
- A pre-filing credit counseling course
- A post-filing debtor education course
Each course generally costs between $10 and $50, depending on the provider.
These requirements are identical for both chapters.
Attorney Fees
This is where the largest cost difference appears.
That extended involvement in Chapter 13 requirements increases the attorney’s time and responsibilities.
As such, an estimate of bankruptcy attorney fees in Georgia is:
- Chapter 7: approx. $1,200–$2,500 in Atlanta
- Chapter 13: approx. $3,000–$5,000+
Trustee and Administrative Costs
In Chapter 7, a trustee reviews your case and determines whether non-exempt assets exist. In most consumer cases, no assets are liquidated.
The trustee’s compensation is built into the bankruptcy system and paid from estate funds if assets exist, not directly by the debtor in most consumer cases.
In Chapter 13, however, a trustee actively administers your repayment plan. A percentage of your monthly payment, often up to 10%, goes toward trustee administrative fees. This cost is built into your repayment structure.
Who Pays the Cost of Bankruptcy?
The bankruptcy petitioner pays the attorney fees, all bankruptcy fees, and court costs. Bankruptcy attorneys charge clients a flat fee or an hourly rate. Fees and rates vary depending on location and the law firm’s additional services. Attorneys in larger firms in a city will have higher rates than a smaller firm in a suburban location.
If you are self-employed or a business partner, your case may be more complicated. As the complexity and amount of work required for cases filed increase, so do rates and fees. An Atlanta bankruptcy lawyer will charge you based on these factors.
Most bankruptcy lawyers will provide you with a free bankruptcy evaluation. One way to determine the cost of filing for bankruptcy in Atlanta is to schedule an initial consultation and request an estimate.
In a Georgia Bankruptcy, Will I Lose All My Assets?
Under Georgia law, you may qualify for bankruptcy exemptions for Chapter 7, which means many people can file for bankruptcy and keep certain assets. The assets you may keep are determined by state law and usually include your home, a motor vehicle, and your retirement plans. A Chapter 13 filing does not require the sale of any assets.
Can You File Bankruptcy for Free if You File Yourself?
While individuals may file without an attorney, errors in eligibility analysis, exemptions, or documentation can result in dismissal, loss of assets, or denial of discharge.
Filing for Chapter 7 or Chapter 13 bankruptcy can be complicated. If it is a convenience you are after, consider working with a local bankruptcy lawyer who will help you file for bankruptcy from your home.
A bankruptcy attorney can review your case, present debt relief options, and advise whether filing for bankruptcy is in your best interest. Reasons to hire a bankruptcy lawyer include:
- Bankruptcy filings involve complex document preparation and focused knowledge of current bankruptcy laws.
- One mistake on a bankruptcy filing form can result in a denial of your bankruptcy petition.
- The nationwide database of bankruptcy forms includes over 45 forms for different situations. An attorney will know the appropriate forms to use for your case.
- To protect your financial interests, you must work effectively with court officials, trustees, and creditors. A bankruptcy attorney works with these professionals daily and knows the ins and outs of the process.
- You may not receive a Chapter 7 discharge if you received a prior Chapter 7 discharge within the past eight years.
- Chapter 13 bankruptcy also has limits on how soon you can file again. Without the proper legal representation and advice, you may waste the opportunity a bankruptcy filing offers.