In this article:
You're preparing to file for bankruptcy after accumulating a lot of debt. So, the last thing you may want to do is pay an attorney to handle your bankruptcy case. But skipping that step could be a mistake.
While it's not required, hiring a bankruptcy attorney is strongly recommended. If you represent yourself, you'll need to be familiar with federal bankruptcy law and federal court rules.
If you know little to nothing about bankruptcy law and the rules, your bankruptcy case might not go smoothly. In fact, if you submit incomplete paperwork, miss filing deadlines, mishandle complicated bankruptcy math or make legal errors, the odds of your case being thrown out may be higher than if an attorney represents you.
Do I Need an Attorney to File Bankruptcy?
By law, you do not need an attorney to file for bankruptcy. Without an attorney, you can represent yourself as what's known as a pro se litigant. In 2024, the share of people representing themselves in U.S. bankruptcy cases averaged 7.5%.
You'll likely be better off if you hire a bankruptcy attorney, though. Research shows self-represented bankruptcy filers are more likely to:
- Have their cases thrown out
- Have their cases closed without their debts being discharged
- Lose property that a filer typically can keep in a bankruptcy case, such as a home or car
Learn more: Bankruptcy: How It Works, Types and Consequences
How Much Does a Bankruptcy Attorney Cost?
The cost of hiring a bankruptcy attorney varies based on factors such as the type of bankruptcy you're filing, your location and your attorney's experience. Generally, though, the attorney's fees range from $1,500 to $6,000.
While paying attorney's fees might put a dent in your finances, it's worth noting that some bankruptcy attorneys will let you pay off the fees over time.
Chapter 7 Bankruptcy Attorney Fees
Chapter 7 is one of two types of bankruptcy for consumers, with the other being Chapter 13. Attorney's fees in a Chapter 7 bankruptcy case generally range from $1,500 to $2,000.
A Chapter 7 case eliminates most of your debts. In Chapter 7, a court trustee oversees the sale of your property, with the proceeds going toward paying your creditors. Some of your property might be exempt, meaning it can't be sold to pay creditors. In many cases, filers have little to no non-exempt property, resulting in little to no property being sold.
After any nonexempt assets are sold and the money is distributed to creditors, your remaining debts are wiped out, or discharged. In other words, you won't be legally responsible for paying those debts.
Learn more: What Is a Bankruptcy Discharge?
Chapter 13 Bankruptcy Attorney Fees
Attorney's fees in a Chapter 13 bankruptcy case generally range from $3,500 to $6,500. Those fees are higher than in a Chapter 7 case because a Chapter 13 case requires more work over a longer period.
In a Chapter 13 case, a filer is reorganizing their finances. Chapter 13 is designed for people who are coping with significant debt but have enough income to fully or partially pay back their creditors. Through a three- or five-year plan, a Chapter 13 filer makes monthly payments. Once the plan ends, many remaining debts are canceled.
Protection Against Excessive Attorney's Fees
Federal law prohibits attorneys from overcharging bankruptcy clients.
In each case, a bankruptcy attorney must report fees that have been paid or will be paid by a client. If the fees exceed the "reasonable value" of legal services provided to a client, the court might cancel the attorney's contract with the client or might demand that the attorney pay back excessive fees.
Should I Hire a Bankruptcy Attorney?
Given the long-term financial and legal consequences, it's highly recommended you hire a bankruptcy attorney to manage your case. A bankruptcy attorney can help:
- Advise you about whether to file for bankruptcy and, if so, which type of bankruptcy you should choose
- Understand bankruptcy laws and procedures
- Fill out legal forms
- Determine whether you should be able to keep your home, your car or other property after filing
- Protect eligible assets from being sold to pay creditors
- Deal with creditors
- Gain a better legal and financial outcome
- Provide peace of mind through legal, emotional and psychological support
Learn more: How to Recover From Bankruptcy
How to Find a Bankruptcy Attorney
Finding a knowledgeable, competent bankruptcy attorney isn't hard. Here are four ways to do it:
- Ask relatives, friends or colleagues whether they know of any reputable bankruptcy attorneys in your area.
- Enter "bankruptcy lawyer" and your ZIP code in the Better Business Bureau's searchable directory. There, you'll see a list of attorneys and ratings from clients.
- Check the searchable database on the website of the National Association of Consumer Bankruptcy Attorneys or the National Association of Consumer Advocates.
- Get a referral from your state's bar association.
The Bottom Line
While it may cost several thousand dollars, hiring a bankruptcy attorney to help navigate the bankruptcy process can pay off in the long run. For instance, a bankruptcy attorney may be able to help you keep some of your property rather than it being sold to pay creditors or can help you avoid legal mistakes that you might make without an attorney.
If you're considering bankruptcy, you know that the consequences for your credit can be severe. To keep track of where your debts are in the discharge process, as well as where you are on the road to recovery from bankruptcy, free credit monitoring from Experian can help. You'll get real-time alerts to changes in your credit profile and see where you stand.
