When you’re in an overwhelming amount of debt, every dollar you spend matters. That is why learning that there is a considerable fee associated with filing for bankruptcy can come as a shock to many. However, before you write off this possibility, it’s important to understand that you may be able to have the fees associated with this process waived. As such, if you’re considering filing for bankruptcy, the following blog explores what you must know about these expenses, including how a Memphis, TN Chapter 7 bankruptcy lawyer can help you have these fees waived for your filing.
How Much Are the Filing Fees?
It’s imperative to understand that the filing fees imposed for bankruptcy are determined by the federal government, as the state does not oversee these matters. In general, the filing fee for both Chapter 7 and Chapter 13 is around $300.
You should also note, however, that in addition to the filing fees, you’ll also be responsible for paying the costs of the mandatory pre-filing credit counseling courses. If you do not take this course, your case will be dismissed, and you’ll need to re-file once you have met the necessary requirements. These, on average, cost around $85.
Is It Possible to Waive This Expense?
For many considering bankruptcy, paying $300 just to file can be a deterrent. However, before you completely dismiss the idea, it’s critical to understand your options. Depending on your circumstances, you may be able to have the fees associated with your case waived.
You should note that, due to the nature of Chapter 13, you cannot have the filing fees waived if you pursue this option. The only way in which you can have this expense waived is by pursuing Chapter 7.
However, if you are filing for Chapter 7, you are eligible to have the filing fees waived if your income is 150% below the poverty level for households of your size. If this is the case, you will be able to complete an Official Form 103B, Application to Have the Chapter 7 Filing Fee Waived. You will complete this document and submit it with the official bankruptcy petition. You should also note that if you are eligible to have the filing fees waived, you will likely be eligible to have the cost of the pre-filing credit counseling courses waived as well.
As you can see, navigating the bankruptcy process can be incredibly difficult. That is why it’s in your best interest to connect with an experienced attorney with the Arnold Law Firm. Our team understands the complicated nature of bankruptcy, which is why we are committed to guiding you through this process so you can reap the full benefits of filing. When you’re ready to declare, do not hesitate to contact our team today to learn how we can represent you.
