What Can I Do If the Cost to File Chapter 7 is Too High?

The bankruptcy court appreciates the fact that a petitioner may not have the money to pay a filing fee. Reasoning is, if you had money, you wouldn't be filing. A petitioner can either apply to pay the chapter 7 cost in installments or ask for a fee waiver, depending on their personal money situation..

Installment Payments

You will be asked at the time of filing if you can pay the entire chapter 7 cost at once or if you need to pay by installments. Saying yes will need to be accompanied by form B3A, application and order to pay filing fees in installments. Each court district is different in how much you will have to pay for each payment of four. The application will be then sent on to the clerk of court for approval. Provided everything has been filled out properly, the clerk should approve and enter the order.

When you fill out the form, you need to supply dates for when the payment will be made. Make sure the payment is in by that date or you may see your case dismissed. It's entirely possible that courts in slower districts may contact you if your payment is late and give you a grace period. But when all is said and done, why play with fire? Put reminders up everywhere to get the money into the mail with enough time to reach the court.

Asking to Waive the Filing Fee

If you have no money for the chapter 7 cost, you can apply to have it set aside. You must be have income less than 150% of the official poverty line, listed on form B3B and be unable to make installment payments. The poverty guidelines are available online at www.uscourts.gov. Fill out as much information as possible on the form to prove your inability to pay. Never, ever lie on this form or any other in the petition. If anything was exaggerated, it will be found out and your application will be thrown out, possibly your entire case if the court allowed the process to begin.

The court will look at the forms promptly after filing so the petitioner doesn't have to wait long for an answer. This applies to both installments and waivers.

Working With a Lawyer

It's never a good idea to file bankruptcy without a lawyer. Unfortunately the inability to pay will hinder obtaining assistance. Try the bar association to find an attorney that will work on a sliding scale or installment payments. They are out there and will do what they can to assist you.