Application for Waiver of Court Filing Fee in Chapter 7 Bankruptcy

Application for Waiver of Court Filing Fee in Chapter 7 Bankruptcy "Ironically, bankruptcy is not inexpensive. Don't misjudge me. For the majority of individuals who are struggling financially, filing bankruptcy is significantly less expensive than repaying the debts to be discharged in the bankruptcy case. However, there are costs associated with bankruptcy filing. Included are attorney fees, the court filing fee, and costs associated with ordering a credit report and completing the credit counseling and financial management courses mandated by the Bankruptcy Code.Fortunately, genuinely needy debtors may be able to avoid paying the court's fee, which as of the time this article was written was as high as $306.00. A debtor must submit a request for waiver of this cost in order to avoid paying it. To qualify for a waiver, the debtor must pass a four-part test.The debtor must first be an individual. Businesses cannot obtain a discharge. Second, waivers are only available for Chapter 7 bankruptcies. Chapter 13 debtors are not eligible. Thirdly, the debtor's household income cannot exceed 150 percent of the federal poverty level based on the size of the household. Fourth, the debtor must demonstrate that they are unable to pay this amount in 120-day installments.It is at the discretion of the bankruptcy judge presiding over the case to grant a waiver. Even if the judge wishes to grant the amnesty, he cannot if the debtor's income exceeds 150 percent of the poverty level for the size of the debtor's household. United States Department of Health and Human Services publishes the poverty guidelines. The judge will also consider the debtor's assets, how much they paid their counsel for bankruptcy representation, and whether there is reason to believe the debtor's income will increase in the near future.
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