Filing bankruptcy carries a financial cost. Of course, for most people with burdensome debt problems, not filing bankruptcy may carry greater financial costs. One of the first and most frequent questions that prospective clients ask us relates to the total out-of-pocket cost that bankruptcy requires.

When any person hires an attorney for representation in a bankruptcy case, he or she should plan to pay the following three types of fees or costs:

• the bankruptcy attorney’s fees for advice, the collection, review, organization, and completion of all required bankruptcy documentation, and representation at all bankruptcy hearings;
• the bankruptcy court’s filing fee; and
• the cost of prebankruptcy and post-bankruptcy credit counseling and financial management courses.

Not all attorneys charge the same fee for filing a bankruptcy case. Also, the average fee for representation in Chapter 11 and Chapter 13 cases typically exceeds the average fee for representation in Chapter 7 cases. Also, circumstances, in any case, may require additional work beyond that of an average case and, therefore, necessitate a higher fee.

Bankruptcy filing fees are much more straightforward although they do change (increase) regularly. The following is a list of the filing fees for bankruptcy cases in the District of Utah. All Utah bankruptcy debtors will be required to pay one of these fees.

Filing Fees for New Petitions

Chapter 7 Voluntary (or Involuntary) Petition       $335.00

Chapter 11 Voluntary (or Involuntary) Petition     $1,717.00

Chapter 11 Railroad                                                     $1,550.00

Chapter 12 Voluntary Petition                                   $275.00

Chapter 13 Voluntary Petition                                   $310.00

The fees for credit counseling courses generally fall within a ballpark of $25 to $60. Many agencies charge couples who are married and/or filing jointly one fee for both individuals. Debtors are required to take two courses: one prebankruptcy credit counseling course and one post-bankruptcy financial management course.

The cost of filing a Chapter 7 bankruptcy case is often less than $2,000, which is an efficient, effective, and economical way to solve burdensome financial problems and gain a fresh start. Theron Morrison and the Morrison Law Group may help any Utah resident better understand their bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.