⚖️ Chapter 7 vs Chapter 13 Bankruptcy Cost 2026: Fees by State + Scenarios

Data‑backed estimates · lawyer rates · retainer · real case examplesBased on 2026 Legal Trends Report

Chapter 7

Liquidation / fresh start

Lawyer fee range$1,500 – $3,500

Court filing fee$338

Bankruptcy retainer (avg)$4,015

Wipe out credit cards, medical bills, unsecured debt
3‑6 month process
Must pass means test (income below state median)
Non‑exempt assets may be sold
10 years on credit report

Chapter 13

Reorganization / wage earner plan

Lawyer fee range$3,000 – $6,000

Court filing fee$313

Bankruptcy retainer (avg)$4,015

Catch up on mortgages/vehicle payments
3‑5 year repayment plan
No income limit (debt limits apply)
Keep all property
7 years on credit report

📍 Get personalized estimate by state & debt size

State

Total unsecured debt

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	Chapter 7	Chapter 13
Attorney fee (estimated)	$2,500	$4,500
Court filing fee	$338	$313
Total upfront	$2,838	$4,813
Avg retainer (bankruptcy)	$4,015	$4,015
Monthly (if financed/plan)	N/A	$180–$320
State bankruptcy hourly rate	$420/hour

⚡ Chapter 13 fees often partially included in plan. Retainer from 2024 Legal Trends Report.

📋 Real‑life bankruptcy scenarios: which chapter fits?

💳 “Medical debt wipeout” – Chapter 7
Lisa, single, $38k income (below AL median), $45k credit card + medical. No house.
Estimated cost: $1,950 (AL rate adjusted) · Discharged in 4 months

🏡 “Save my home” – Chapter 13
The Gomez family, CA income $95k, missed mortgage payments $18k, car loan.
Plan: 5 years, $550/mo (includes part of attorney fee) · kept house

📉 “Business debt overload” – Chapter 7
Mike, sole proprietor, Texas, $62k debt, business closed, assets exempt.
Chapter 7 cost: $2,900 (TX rates) · all unsecured discharged

⚖️ “Above median income” – Chapter 13
NJ couple, $145k income (above median), $30k credit card, two cars.
Chapter 13 required, $4,200 lawyer fee, 5-year payment plan

❓ Frequently asked bankruptcy cost questions (2026)

1. What is the average retainer for bankruptcy in 2026?

Based on the 2024 Legal Trends Report (extrapolated), the average bankruptcy retainer is $4,015. However, retainers vary by state and complexity. Some attorneys apply the retainer to the total fee.

2. Can I include attorney fees in Chapter 13 plan?

Yes. In Chapter 13, a portion of the lawyer’s fee can be paid through the plan, reducing upfront costs. Usually you pay the retainer first ($1,000–$2,500) and the rest is spread over 36–60 months.

3. Which state has the highest bankruptcy hourly rate?

According to 2026 data, Delaware ($630/hour), Nebraska ($614), and D.C. ($587) lead. West Virginia and several states have unavailable data, but general rates are lower.

4. How does debt size affect total Chapter 7 cost?

Larger debt often means more complex asset analysis, possibly increasing lawyer fees. In our calculator, we adjust fee range from $1,800 (small) up to $4,000 (very large) before state multiplier.

5. What’s the difference between filing fee and lawyer fee?

Court filing fees are fixed: Chapter 7 $338, Chapter 13 $313. Lawyer fees are separate and cover preparation, means test, representation. Our numbers include both.

🏛️ Bankruptcy specific hourly rates by state (2026)

IMPORTANT DISCLAIMER: This tool provides estimates based on 2026 Legal Trends Report, state-specific bankruptcy rates (from the master dataset), national retainer averages, and court fee schedules. Actual costs vary with case complexity, local market, and attorney experience. Always consult a licensed bankruptcy attorney. This is not legal advice.