If you are buried in credit card balances, medical bills, or other debt you cannot realistically pay, Chapter 7 bankruptcy may give you a fresh start. It is a federal process that, for people who qualify, wipes out most unsecured debt and stops collection efforts while the case is pending. This page explains what Chapter 7 does, who qualifies, and what it costs to have Jim Tily handle your case.
What Chapter 7 Bankruptcy Does
Chapter 7 is the form of bankruptcy most people mean when they say they want to "wipe the slate clean." It is sometimes called liquidation bankruptcy. In a typical consumer case, the court discharges most unsecured debts, meaning you are no longer legally obligated to pay them. Common dischargeable debts include credit card balances, medical bills, personal loans, and most older unpaid accounts in collections.
Some debts generally cannot be discharged in Chapter 7. These often include most student loans, recent tax debts, child support and alimony, and debts arising from fraud. The details depend on your situation, which is what a consultation is for.
The Automatic Stay Stops Collection
The moment a Chapter 7 case is filed, a federal court order called the automatic stay takes effect. It stops most collection activity immediately, including collection calls, lawsuits, wage garnishment, and, in many cases, foreclosure and repossession, at least temporarily. For many people, the filing itself brings the first real relief from the pressure.
Do You Qualify? The Means Test
Not everyone qualifies for Chapter 7. Eligibility is governed by a calculation called the means test, which compares your household income to the median income for a household of your size in Utah. If your income is below the median, you generally qualify. If it is above, a more detailed calculation determines whether Chapter 7 is available to you or whether a different chapter fits better. Reviewing your eligibility is the first thing we do.
What It Protects: Exemptions
A common fear is that filing bankruptcy means losing everything. For most consumer filers, that is not what happens. Utah has its own set of exemptions that protect certain property, which can include equity in your home, a vehicle up to a set value, household goods, and tools of your trade, among others. In a large share of consumer Chapter 7 cases, filers keep all or nearly all of their property. The specifics depend on what you own and the current exemption amounts, which we review before filing.
The Two Required Courses
Federal law requires every individual filer to complete two short financial education courses. The first is a credit counseling course taken before the case is filed. The second is a debtor education course taken after filing and before the discharge is entered. These are provided by approved agencies and each charges its own small fee, separate from the attorney fee and the court filing fee.
What It Costs
Flat Attorney Fee
$1,000
Jim handles a standard consumer Chapter 7 case for a flat attorney fee of $1,000. You know the cost up front, with no hourly billing.
Court filing fee is separate. The Chapter 7 court filing fee is paid to the bankruptcy court and is not included in the attorney fee. It is currently $338. Court filing fees are set by the federal courts and change from time to time, so the amount due when your case is filed may be different. We confirm the current fee before filing.
Course fees are separate. The two required financial education courses are provided by approved agencies that each charge their own small fee.
The $1,000 flat fee covers a standard consumer Chapter 7. Cases with unusual assets, business interests, or other complications may require a different fee, which Jim will explain in writing before you hire him.
Where your case is filed. Utah Chapter 7 cases are filed in the United States Bankruptcy Court for the District of Utah. Jim handles the entire process, from the means test and paperwork through the meeting of creditors and discharge.
What Hiring Jim Looks Like
You work directly with Jim from the first consultation through discharge. There are no junior associates and no hand-offs. He reviews your debts and income, confirms whether Chapter 7 is the right tool, prepares and files the petition and schedules, represents you at the meeting of creditors, and sees the case through to the discharge order. The consultation is free and confidential, and its purpose is to give you an honest assessment of your options, not to pressure you to file.
Talk to Jim About a Fresh Start
Free, confidential consultation. Find out whether Chapter 7 is right for you and exactly what it will cost before you decide anything.
(801) 641-0883 Send a MessageThis page is attorney advertising and is for general informational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. Eligibility, exemptions, fees, and outcomes depend on your specific circumstances and on current law. Contact an attorney to discuss your situation.