What To Expect – Bankruptcy Procedures For Waiving Filing Fee

November 20th, 2008 by Reed Allmand

When a debtor applies for a bankruptcy filing fee waiver, the law states that the bankruptcy court must decide immediately if the waiver application will be approved. Once the decision is made, the information will be given to the United States trustee or bankruptcy administrator, the case trustee, the debtor, and the attorney for the debtor. If a bankruptcy filing fee waiver is denied the bankruptcy law requires that the debtor be notified within a reasonable time, about 10 days. Any debtor denied a fee waiver can pay in full or make payments in installments according to a schedule provided by the bankruptcy court. If the debtor fails to pay the bankruptcy filing fee in full or is late making payments, the bankruptcy case may be immediately dismissed by the bankruptcy court.

Sometimes a debtor will begin making payments on the bankruptcy filing fee; but find later on that he/she cannot continue because of economic restraints. If this is the case, the debtor can reapply for a bankruptcy filing fee and the court will waive any balance if they approve the waiver application.

Even if you believe that you can afford to pay the bankruptcy filing fee, speak with your bankruptcy attorney to see if you meet the eligibility requirements of the bankruptcy fee waiver program. Make sure that you accurately depict your financial circumstances to your bankruptcy attorney. If it is discovered during the bankruptcy process that you could afford the filing fee the waiver will be vacated by the bankruptcy court and you will be required to pay the filing fee or face dismissal of the bankruptcy case.