Cost to File Bankruptcy in Philadelphia

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At Sadek Bankruptcy Law Offices, we realize that every situation is different. Our debt relief lawyers will take the time to learn about your situation and your goals. Our objective is to explain your legal options and offer the best debt relief strategy for you in the most compassionate and friendly manner possible. Call 24/7 to schedule your meeting with a lawyer.


Our office understands the financial stress our clients endure. Therefore, in addition to reasonable legal fees, we offer a payment plan to all of our valued clients to make quality legal services most affordable.


In addition to our primary law office in Center City, Philadelphia, we also have law offices throughout the Greater Philadelphia, Pennsylvania Area and in New Jersey. Our branch offices have contributed to making us the #1 Bankruptcy Filer and debt relief firm in the Greater Philadelphia area. Our goal is to have a convenient location within 20 minutes of where our clients work or reside.

Cost to File Bankruptcy in Philadelphia

As a bankruptcy lawyer in Philadelphia, Pennsylvania I understand that legal fees and costs are of great concern to our potential clients. The most common question I get from clients and sometimes from other lawyers even is How much does Bankruptcy cost?

This answer does depend on the Chapter of Bankruptcy, whether a Chapter 7 or Chapter 13 and the complexity of the matter as well, but generally legal fees and costs prior to filing are around $2,000. I have some clients that are financially prepared to file right away. However, most of our clients require flexibility when it comes to legal fees.

$0.00 Down Bankruptcy Option

As the #1 filer of Bankruptcies in the greater Philadelphia area, we can be most flexible when it comes to legal fees and payment plans. Our office offers Chapter 7 legal fees for as low as $0.00 down, meaning that a filer only pays the Court filing fee $338.00, plus a credit counseling course $20.00 and a credit reporting fee $45.00 for a total of $403.00, then pays the legal fees through an extended monthly payment plan over the course of one year through a third party. Of course, filing in this fashion somewhat complicates the case and there are third party fees as well which significantly increase the overall case cost, however, “$0.00” down is an effective way to file bankruptcy quickly in Philadelphia if one does not have the financial ability to satisfy legal fees and costs prior to filing.

Payment Plan Prior to Filing Bankruptcy

Our Philadelphia bankruptcy law office also offers payment plans prior to filing. Extended payment plans for legal services such as Bankruptcy and related areas of law in Philadelphia has been the hallmark of our practice since 2006. Our office generally allows 6 months for a client to pay toward their legal fees. Once a client contacts our office, they do not want to wait another 6 months to file, however, we are more than happy to offer an extended payment plan in that life’s financial emergencies do happen. Also, by offering an extended payment plan we are allowing our clients to start saving money and savings is the key to staying out of debt. Further, during the extended payment plan we will field all creditor communication on behalf of our Bankruptcy client. We advise our clients to us any creditor communication and answer the phone and say, “I have hired a lawyer regarding this debt, please call my lawyer Brad Sadek of Sadek Bankruptcy Law Offices and he will field any questions you have.” Our office field creditor calls 24/7, 7 days a week to ease the emotional burden of debt our clients were carrying.

How Much Does it Cost to Not File Bankruptcy?

Chapter 7 Bankruptcy Example

This answer depends greatly, but let’s use the example of an individual client that qualified for a Chapter 7 Bankruptcy and had $30,000 in debt and was paying minimum payments of $900 per month to her creditors. In this example the debt cost $10,800 per year and over 5 years of minimum payments the debt would cost $54,000 and with only minimum payments of $900 would be far from paid off. By filing Chapter 7 Bankruptcy and eliminating the debt, the Bankruptcy filer has saved $52,000 ($54,000 – $2,000 legal fee) over a 5 year period. Further, the Bankruptcy will help improve the filers credit score, so long as they stay away from new debt, provide greater ability to save for life’s emergencies rather than relying on the debt cycle and lastly, the bankruptcy allows greater financial freedom to finance life’s rewards such as a new car or a new home.

Chapter 13 Bankruptcy Example

The idea to revisit the topic of the cost to file/not file bankruptcy is from the below situation which I believe as we heal from the pandemic and as mortgage forbearances come due will be increasingly common in the Philadelphia area. Our Chapter 13 Bankruptcy client was laid off during the pandemic and was provided a mortgage forbearance for one year. My client is also 11 years into a 30 year mortgage term. The one year of mortgage payments at $1,500.00 amounted to $18,000.00 with taxes and insurance included. My client made numerous calls and wrote hundreds of emails to the mortgagee that went unanswered or received a canned message at best. My client was also using personal loans to pay for life’s necessities in that he has a wife and 2 kids and is/was the breadwinner for the family. The personal loans amount to $20,000.00. My client was one of the lucky few that eventually hear back from the mortgage company, however he expected the $18,000 of forborne mortgage payments to be added to the “back-end” of the mortgage. The mortgagee’s response was a proposed modified mortgage over a new 30-year term with a new mortgage payment of $1,400.00 per month or pay the $18,000 in a lump sum, which was not financially feasible.

At my client’s current mortgage, he has 19 years left at $1,500.00 month or $342,000.00 plus the $18,000.00 that he is behind for a total amount due of $360,000.00.

At the proposed modified mortgage amount, at a new 30 year term (adding 11 years to the mortgage) at $1,400.00 month the mortgage would cost $504,000.00 over 30 years.

My client’s solution was to file a Chapter 13 Bankruptcy and repay the $18,000.00 of mortgage arrears over a 5-year period while paying 0% to the $20,000 of personal loan debt. My client is now working, paying his regular monthly mortgage of $1,500.00 and a Chapter 13 Trustee payment of $370.00 per month and saving $144,000.00 by not accepting the modification and $20,000.00 that was due on the personal loans for a total savings of $164,000.00.

In summary, yes, there is a cost to filing Bankruptcy, however, I believe the savings potential in Bankruptcy makes it the most powerful tool in all of law. To see if Bankruptcy can help you save money and get a fresh financial start, call our Philadelphia Bankruptcy office 24/7 at 215-545-0008. We look forward to helping you!!

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