When you are in overwhelming debt, every dollar you spend is imperative. However, when you no longer have the ability to manage this debt, bankruptcy may quickly become your only option. If this is the case, you may be disheartened to learn that there is a filing fee associated with this process. The following blog explores what you should know about these matters, including the importance of working with a Montgomery County bankruptcy lawyer to help you not only navigate the filing process, but also determine if it’s possible to have these fees waived.
What Are the Bankruptcy Filing Fees?
If you are considering filing for bankruptcy in Pennsylvania, it’s imperative to understand that there are a number of fees involved in this process that you must prepare for. Generally, one of the most important matters you must take into consideration is the filing fees. These are set by the federal government, as the state has no involvement in this process. Regardless of which chapter you pursue, the fees are around $300.
You should also note that, in addition to the filing fees and your attorney expenses, you must also pay the fees for the mandatory pre-filing credit counseling courses. These are required, and failure to complete this course will result in the dismissal of your bankruptcy case, meaning you will have to re-file once you have met the requirements. On average, this course costs around $85.
Is It Possible to Have These Fees Waived?
If the idea of paying for debt relief has you reconsidering this process, it’s important to understand that you may be able to have these fees waived based on your circumstances.
In general, if your income is 150% or more below the federal poverty levels for households of your size, you will be able to apply to have the filing fees waived for your case. To do this, you will simply file Form 103B and submit it along with your bankruptcy petition. You should also note that, generally, if you are deemed eligible for a filing fee waiver, you will likely be eligible to have the credit counseling fees waived as well.
It is imperative to understand, however, that due to the nature of Chapter 13 bankruptcy, which is a repayment plan, you will be unable to have the fees associated with filing waived. As such, you will only be eligible to have these fees waived for a Chapter 7 bankruptcy filing.
As you can see, navigating a bankruptcy filing can be an incredibly difficult process to navigate, which is why it’s in your best interest to enlist the assistance of an experienced attorney to guide you through this process. At Mudrick & Zucker, P.C., we understand how overwhelming these matters can be to navigate, which is why we will do everything in our power to help make this process as simple as possible for you. Connect with us today to learn how we can assist you.
