If you are considering filing for bankruptcy, it is most likely because you can no longer afford to pay your bills or put food on the table. But here’s something you need to understand once and for all: filing for bankruptcy is not free. In fact, the costs of filing for bankruptcy in Utah tend to be so high that many debtors are discouraged from filing at all.
In no way does it mean that we are trying to dissuade you from filing for bankruptcy. On the contrary, we want you to know all the hidden pitfalls on your journey to wiping the slate clean and evaporate all of your debt.
We invited our Salt Lake City Chapter 7 bankruptcy attorney from Justin M. Myers, Attorney-at-Law, LLC, to explain how much it will cost you to file for bankruptcy in Utah. Ladies and gentlemen, fasten your seatbelts or grip to the edge of your seats.
The cost of filing for Chapter 7 and Chapter 13 bankruptcy in Utah
First and foremost, the total cost of filing for bankruptcy depends on the type of bankruptcy, Chapter 7 or Chapter 13. Regardless of the type, the cost of filing for bankruptcy consists of the following elements: court fees, credit counseling fees, and, more often than not, attorney fees.
U.S. courts have fixed fees for bankruptcy filing costs. In 2018, debtors nationwide have to spend $335 to file Chapter 7 bankruptcy or $310 to file Chapter 13 bankruptcy. If someone tells you that you can file for bankruptcy for free or for less than this, it is definitely a red sign. These people might be trying to scam or defraud you.
Credit counseling courses: how much do they cost?
Before we begin to estimate the cost of filing for bankruptcy in Utah, it is important to note that you may qualify for installment payments and/or waiver possibilities. You may be able to waive a fee when you can prove that you cannot afford it, even in installment payments. Also, in order to qualify for these privileges, you must demonstrate evidence that your income is less than 150 percent of the poverty line in the U.S.
Anyone who wants to file for bankruptcy in Salt Lake City or elsewhere in Utah is legally required to take a court-approved credit counseling session. In certain cases, claimants are required to take a financial management course, which is not free either. However, these fees will not get too deep into your pockets, as they usually cost less than $100.
Do you really need a bankruptcy attorney in Utah?
One of the most prominent portions of the costs of filing for bankruptcy will be attorney fees. Attorney fees depend on the type of bankruptcy and the state in which you are filing. Typically, attorney fees for filing for Chapter 7 bankruptcy in Utah range between $1,000 and $3,000.
Attorney fees associated with filing for Chapter 13 bankruptcy, on the other hand, will be a little bit more costly. For a Chapter 13 case, you may be required to spend as much as $5,000. But is it even worth it?
Does it make sense to spend thousands of dollars on an experienced Chapter 7 bankruptcy attorney in Salt Lake City or elsewhere in Utah? It does. While you do have a right to file for bankruptcy with no legal representation, only a skilled lawyer who knows all the laws and rules associated with filing for bankruptcy will be able to ensure that your demands and needs are met.
In fact, our Salt Lake City Chapter 7 bankruptcy attorney at Justin M. Myers, Attorney-at-Law, LLC, may be able to offer his legal services for a discounted price. Get a free consultation from our lawyers by calling at 1-801-505-9679. Let our lawyers estimate the total cost of filing for bankruptcy in your case.