How do you pay the bankruptcy filing fee, and can it be waived?

What does the court charge to file?

The fees are normally paid to the clerk when the case is filed. When spouses file a joint petition, only one set of fees is charged.4 3

These are court fees only. A lawyer's fee, if you hire one, and the fees for the required counseling and education courses are separate. The amounts above come from the fee law and the bankruptcy court fee schedule, so check the current schedule or ask the clerk before you file.

How do you ask to pay in installments?

You file an application with your petition. The application to pay the filing fee in installments is Official Form 103A. The clerk must accept an individual's petition that comes with a completed and signed Form 103A, whether or not any part of the fee has been paid.5 6

The court then sets the terms. It may order the number of installments, which cannot be more than 4, the amount of each and the payment dates. All payments must be made within 120 days after the petition is filed. For cause the court may extend the time for an installment, but the last one must be paid within 180 days after filing.6

• Propose dates you can meet. Failure to pay the fees may result in dismissal of the case.4 3
• Until the filing fee is paid in full, you must not make any further payment to an attorney or to anyone else who provides services in connection with the case.6
• A petition preparer may not collect or receive money from you for the court fees. You pay the court yourself.7

Who can have the Chapter 7 fee waived?

The waiver has two conditions, and both must be met. Your income must be less than 150 percent of the official poverty line for a family of your size, and you must be unable to pay the fee in installments. A person under the income line who could manage installments does not meet the second condition.1 4

The application to have the Chapter 7 filing fee waived is Official Form 103B, and the clerk must accept an individual's Chapter 7 petition that comes with it. The form asks for your family size, your family's average monthly net income, including the value of non-cash help such as SNAP benefits or housing subsidies, your expenses and property, and why you cannot pay in installments within 120 days. You sign it under penalty of perjury.5 6 8

The court decides. The poverty line depends on family size and is revised every year, so use the current official figure for your household.1

What happens after you ask for a waiver?

The court's order on Form 103B has three outcomes. It can grant the waiver, deny it, or schedule a hearing on it. If a hearing is set and you do not appear, the court may deny the application.8

A denial does not end the case. The court sets terms for paying the fee, and you can promptly propose a different timetable, using the installment form if you like. Your debts are not discharged until the whole fee is paid. Even a granted waiver can be reversed if later developments in the case show it was unwarranted.8 9

What does a fee waiver cover, and what does it leave out?

For the waiver, the filing fee means more than the basic fee. It includes the other fees that are payable to the clerk when a Chapter 7 case starts, and the court may also waive other court fees for the same debtors.1

A court fee waiver does not pay for the credit counseling session or the debtor education course, which are paid to the agency that provides them. People whose household income is below 150% of the poverty level are presumed to qualify for a free or reduced-fee session from the provider, so ask the agency directly.10 11

Should you ask for installments or a waiver?

They are separate requests on separate forms, and each has its own test. In general terms:

• Filing Chapter 7, with income below 150 percent of the poverty line for your family size and no way to pay even over time: the waiver is written for that situation.1
• Able to pay over a few months: the installment application fits, with up to 4 payments within 120 days.6
• If you are filing Chapter 13, the waiver in the statute is written for Chapter 7. The Chapter 13 fees may be paid in up to four installments with the court's permission.1 2 3

If you are not sure which applies, the clerk's office can explain the court's procedure, and a legal aid office or lawyer can advise on your own figures.