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Who Pays for Bankruptcies?

1 minute read Upsolve is a nonprofit that helps you get out of debt with education and free debt relief tools, like our bankruptcy filing tool. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card.  Explore our free tool


In a Nutshell

When individuals find themselves in debt, bankruptcy can be a solution that gives you a fresh start. But when someone files for bankruptcy, who pays for it? Learn more here.

Written by the Upsolve Team
Updated January 23, 2024


If you are faced with overwhelming debt, you’re not alone. Many Americans today are drowning in financial burden and are in need of a solution. Fortunately, filing for bankruptcy can be the answer to all of your financial problems and provide you with the relief that you need. Once you’ve made the decision to file for bankruptcy and start fresh, you may wonder who exactly pays for bankruptcies? Where does all of that money go?  

Bankruptcy Pays for Itself

Filing for bankruptcy isn’t completely free. So, oftentimes, bankruptcy pays for itself. Between petition fees, liquidation of assets, and for some, repayments plans, a portion of the debt owed is paid through the bankruptcy process alone.

Cost of Personal Bankruptcies

Although the bankruptcy process does help pay for the debt, it typically only attributes a small portion of what was originally owed. So, the company that an individual owes money to usually has to absorb their losses. Sometimes, this can lead to the temporary raises in operating costs or a long term overall costs to consumers.

Upsolve Member Experiences

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Jo Pagett
Jo Pagett
★★★★★ 1 day ago
Upsolve was fast and easy from start to file was about a week and no money paid there needs to be more sites like this for help in all financial areas
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Christopher Gonder
Christopher Gonder
★★★★★ 1 day ago
Very cost effective compared to spending thousands of dollars on an attorney, fortunately it was rather simple and quick to file everything since I don't have much that needed to be filed. Overall, great alternative for those who are limited on funding and need to file for bankruptcy.
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Meredith Cooper
Meredith Cooper
★★★★★ 2 days ago
This is an amazing service! They provide you with all the assistance that you need, from beginning to end. The clerk at the bankruptcy court office said, “Upsolve is a wonderful service. The folks that use them always come in completely prepared.” I totally agree, and this service saved me thousands of dollars! Having them available, helped to relieve my stress/anxiety level.
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Cost of Corporate Bankruptcies

When a company files for bankruptcy the result can have societal impacts. Oftentimes, this results in job losses and increased prices of goods. So, when it comes to corporate bankruptcies, the employees and consumers are typically the ones who are helping pay for the debt through layoffs and a more expensive product.

Should I File for Bankruptcy?

Filing for bankruptcy can be a tough decision. With many options to weigh, bankruptcy may be the solution that you have been looking for. If you’re drowning in crippling debt and are unable to repay your debt in the foreseeable future, then bankruptcy can be the lifeline that you need.

Let Upsolve Help

If you’ve made the decision to file for bankruptcy, Upsolve can help. We offer a totally free online bankruptcy tool and access to expert bankruptcy attorneys for qualified individuals. If you do not qualify for our free services, we can also set you up with a knowledgeable, paid lawyer, and you’ll receive a free consultation before you file for bankruptcy. Complete our quick and easy form to see if you qualify for our free services. We look forward to helping you take back control of your finances and start fresh.



Written By:

The Upsolve Team

Upsolve is fortunate to have a remarkable team of bankruptcy attorneys, as well as finance and consumer rights professionals, as contributing writers to help us keep our content up to date, informative, and helpful to everyone.

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