Waiver of Filing Fee (Chapter 7 Only)

In Chapter 7 cases only, for individuals who cannot afford to pay either the full filing fee upon filing, or the fee over time (through installment payments), and who satisfy the poverty guidelines, there is an application process to request a waiver of the Chapter 7 filing fee, known as "In Forma Pauperis". 

APPLICATION:  If you cannot afford to pay the filing fee, even in installments, you may request a waiver of the filing fee by completing and filing all of the following documents:

(1) an Application for Waiver of Chapter 7 Fee,

(2) Local Form 1006-1.1, and

(3) Schedules I and J.

Upon filing all three documents with the Court, the Bankruptcy Judge will determine whether you meet the statutory requirements to have the full filing fee waived. 

POVERTY GUIDELINE REQUIREMENT:

In order to be considered for a waiver of the filing fee, the individual must demonstrate that they have income less than 150% of the poverty guidelines applicable to the family size involved and are unable to pay the fee over time, through installments. The Court will also take into consideration the totality of the circumstances, including source of income and payment to other professionals. 

DEFECTIVE APPLICATIONS TO WAIVE FILING FEE:

Applications to Waive the Filing Fee that are defective for any reason (incorrect form, missing signatures, incomplete sections) will be denied automatically, and the filer will be required to pay the first installment payment of 25% of the total fee within seven (7) days, with the remaining payments due as outlined in local rule 1006-1.

GRANTING OF APPLICATION: 

If the Application is granted, the fee will be waived for the case filing fee as well as any future related filing fees which may arise (i.e., amendments to schedules). Should the Application be denied, an installment payment schedule will be set automatically by the Court.

FAILURE TO PAY FILING FEE WHEN CASE FILED:

If no fee is paid or application filed upon the case filing, the Court will issue a 7-day Notice of Missing Documents requiring the filer to either:

(1) pay the full filing fee;

(2) file an Application for Payment by Installments, or

(3) if a Chapter 7 case, an Application for Fee Waiver. (See local rule 1007-1(b))

ADDITIONAL INFORMATION - CASE CONVERSION

  • If the filing fee of an individual Chapter 7 debtor is waived and that debtor’s case is later converted to a case under Chapter 13, the debtor must pay the full Chapter 13 filing fee. 

  • If a case is converted from Chapter 13 to Chapter 7, the Court may waive (upon application) any unpaid balance on the filing fee, if the debtor meets the standard of eligibility.

  • If a debtor files an Application to Pay the Filing Fee in Installments and later applies for a Waiver of the Filing Fee, the Court may waive any unpaid balance of the filing fee, but the Court will not refund any fee already paid.