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Business Bankruptcy Cost Estimator

What does filing Chapter 7 or Chapter 11 actually cost? Run the numbers here.

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What Is the Business Bankruptcy Cost Estimator?

Bankruptcy itself costs real money. Chapter 7 liquidation is simpler and cheaper, but it kills the business. Chapter 11 reorganization lets you keep operating under a court-approved plan, but the legal and administrative tab is steep. This estimator breaks down the cost based on which chapter you're filing, your total debt, annual revenue, and asset value. Chapter 7 filing fees are $1,738 as of 2024, with attorney fees running $5,000-$25,000 depending on complexity. Chapter 11 is a different beast: $1,738 filing fees plus quarterly U.S. Trustee fees, attorney fees of $15,000-$100,000+, and ongoing bills for accountants and financial advisors. Know these numbers before you decide between bankruptcy and alternatives like settlement or consolidation.

How to Use This Estimator

Select the Bankruptcy Chapter

Chapter 7 if you're shutting down. Chapter 11 if you want to keep the business alive and restructure. Under $7.5M in debt? Subchapter V of Chapter 11 is faster and cheaper.

Enter Total Business Debt

Everything you owe: loans, MCAs, credit cards, vendor payables, lease obligations, and any personal debts you guaranteed for the business.

Input Annual Revenue

Your current annual revenue. More revenue means more complex filings (and bigger professional bills), but also better odds of a successful reorganization.

Enter Total Asset Value

Everything the business owns: equipment, inventory, real estate, receivables, intellectual property. More assets means higher trustee fees and a more complex case.

Key Concepts

Chapter 7 vs. Chapter 11

Chapter 7 sells off assets, pays creditors what it can, and shuts the business down. Chapter 11 restructures the debt and lets you keep operating under a court-approved plan.

U.S. Trustee Quarterly Fees

In Chapter 11, you pay the U.S. Trustee every quarter based on your disbursements: $325 for under $15K, up to $30,000+ if disbursements exceed $30 million. The tab keeps running until the case closes.

Automatic Stay

The moment you file, an automatic stay stops all collections, lawsuits, foreclosures, and garnishments dead. That immediate breathing room is one of the biggest reasons businesses file.

Subchapter V

Under $7.5M in debt? Subchapter V of Chapter 11 is built for you. It's faster, cheaper, and you keep your equity -- a major advantage over traditional Chapter 11.

Personal Guarantees

Business bankruptcy does NOT wipe out personal guarantees. If you personally guaranteed any business loans, creditors can still come after your personal assets even after the business files.

Expert Insights

Subchapter V changed the game for small businesses when it expanded in 2020. It wraps up in 3-4 months instead of 12-18, costs 40-60% less than traditional Chapter 11, and the owner stays in control -- no creditors' committee running the show.

Before you file Chapter 7, check whether an orderly liquidation (Assignment for Benefit of Creditors, or ABC) would net more than a bankruptcy trustee sale. ABC is usually faster, cheaper, and returns more money to both creditors and owners.

Chapter 11 only works if your reorganization plan is realistic. Courts won't approve wishful thinking, and creditors will challenge projections that look inflated. Build your plan on conservative revenue numbers that prove the business can actually service the reorganized debt.

Frequently Asked Questions

Chapter 7: 4-6 months. Traditional Chapter 11: 12-18 months. Subchapter V: 3-4 months. Complex cases with lots of creditors can drag on for 2+ years.

Not necessarily. Chapter 11 is designed to keep the business running. Under Subchapter V, you keep your equity. In traditional Chapter 11, the plan might require new investors or creditors could end up converting their claims into ownership stakes.

Yes. MCAs get included in business bankruptcy filings. MCA providers will argue their advances aren't technically debt but "purchases of future receivables." Courts are increasingly treating them as debt for bankruptcy purposes, but the law is still evolving on this.

Settlement (negotiating reduced payoffs), consolidation (refinancing into one lower-rate loan), informal workout agreements with creditors, or an Assignment for Benefit of Creditors (ABC). Each has different costs, credit impact, and legal protection levels.

This estimator provides approximate cost ranges based on industry data and does not constitute legal advice. Actual bankruptcy costs vary significantly based on case complexity, geographic location, and attorney fees. Consult a bankruptcy attorney for a case-specific cost estimate.