What Happens When You Can’t Afford Filing Fees for Chapter 7 Bankruptcy?

One reason why many debtors may not have started the filing process for
Chapter 7 bankruptcy
is their inability to pay filing fees. It is possible you may be able
to have them waived if you meet necessary qualifications for your state.
For instance, if you want to file for protection in Texas, your household
size and monthly income may need to be below the poverty level set by
the state. In this case, it needs to be below 150 percent of the poverty line.

Depending on household size (meaning how many people live in your household)
and the amount of monthly incomes the household receives, you may be eligible.
The debtor may also need to prove they will not be able to make payments
in installments. To get permission to waive filing fees a motion is filed
with the court when your petition is filed.

If the motion is filed and it gets rejected, the debtor will need to make
payments in installments. In the state of Texas the debtor may be granted
4 installment payments. Each payment is spaced out during the duration
of the filing. If the debtor does not make payments accordingly their
case could be dismissed without debts being discharged.

Debtors who feel they may qualify for filing fees to be waived should discuss
their personal circumstances with an experienced bankruptcy attorney.
It is possible to work out an arrangement that can help you pay fees in
a timely manner.