What Should I Do if I Cannot Afford to Pay My Bankruptcy Filing Fee?

For many, bankruptcy is a frightening endeavor, as the word colloquially means something other than its true meaning. In truth, bankruptcy is a valuable tool that provides many homeowners across the country with a second chance, allowing them to get their finances back on track and back on their feet again. That being said, to file for bankruptcy, most people are required to pay a filing fee. However, what happens if you cannot afford to pay the filing fee? Fortunately, for many, they may qualify for a Chapter 7 fee waiver. Read on and speak with our experienced New York bankruptcy attorney to learn more about how our firm can help. Here are some of the questions you may have:

How do I know if I will qualify for a Chapter 7 fee waiver?

If you are looking to qualify for a fee waiver, you will have to file for Chapter 7 bankruptcy. You must also provide proof that you are unable to pay the fee in installments within 120 days, that your combined family income is less than 150% of the poverty line, and that you are not a business (you are an individual).

How do I apply for a bankruptcy fee waiver?

To apply for a bankruptcy fee waiver, you will have to fill out the Form 103B Application to Have the Chapter 7 Filing Fee Waived. This application requires various forms of documentation, including any real estate you own and its value, information regarding your bank accounts, combined family income, how much cash you have on hand, your monthly expenses, the size of your family, any personal property you may own, and more. You will also have to state whether you have already applied for bankruptcy within the last 8 years and whether you’ve paid an attorney for assistance in filing for bankruptcy.

How do I know if I will be granted a bankruptcy fee waiver?

Courts will consider multiple factors when determining whether you qualify for a fee waiver. There are three potential outcomes: the first, which is obviously the most favorable, is that the court will grant you the fee waiver. However, in other cases, the court may decide that you and your attorney should attend a hearing to prove that you truly require this waiver. The third, and least favorable outcome, is that the court denies the waiver and instead sets up a payment schedule for you to pay off the filing fee.

Contact our experienced New York firm

The Law Offices of Allen A. Kolber, Esq. effectively represent clients facing bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.