Ready to say goodbye to student loan debt for good? Learn More

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

1,918+ Members Online
Matthew Suarez
Matthew Suarez
★★★★★ 9 hours ago
Awesome tool. Very thankful for Upsolve. I highly recommend using their services.
Read more Google reviews ⇾
★★★★★ 9 hours ago
A lot but I got through it! Im thankful for them frfr they saved me so much money!
Read more Google reviews ⇾
Heather Metzger
Heather Metzger
★★★★★ 10 days ago
Very helpful!
Read more Google reviews ⇾

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.

It's easy to get debt help

Choose one of the options below to get assistance with your debt:

Considering Bankruptcy?

Our free tool has helped 13,732+ families file bankruptcy on their own. We're funded by Harvard University and will never ask you for a credit card or payment.

Explore Free Tool
13,732 families have filed with Upsolve! ☆

Private Attorney

Get a free evaluation from an independent law firm.

Find Attorney

Learning Center

Research and understand your options with our articles and guides.

Go to Learning Center →

Already an Upsolve user?

Read Support Articles →

Upsolve is a 501(c)(3) nonprofit that started in 2016. Our mission is to help low-income families resolve their debt and fix their credit using free software tools. Our team includes debt experts and engineers who care deeply about making the financial system accessible to everyone. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations.

To learn more, read why we started Upsolve in 2016, our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.