When initiating the bankruptcy process in South Dakota, the court mandates the payment of a filing fee. However, recognizing that not all individuals possess the means for this expense, provisions exist to alleviate this burden. Specifically, if you are unable to remit the filing fee, either as a lump sum or through a schedule of installment payments, you may qualify for a fee waiver. Please continue reading as we explore how to complete and file a fee waiver and the importance of connecting with our experienced Rapid City Bankruptcy Lawyers to navigate these difficult times.
Can You Pay the Bankruptcy Filing Fee in Installments?
If you are unable to afford the bankruptcy filing fee at the time of filing but anticipate having sufficient funds to do so in the near future, you may have the option to petition the court for permission to pay the fee in multiple installments over time. To initiate this process, you will need to complete the “Application for Individuals to Pay the Filing Fee in Installments” (Form 103A). With this application, you will formally request the court’s authorization to permit the filing fee to be paid in a series of payments, with a maximum of four installments. If the court grants your request, it will stipulate that the complete filing fee must be paid within a period not exceeding 120 days from the date your bankruptcy case was filed.
It’s important to adhere to the installment payment schedule established by the court. Failure to meet the strict deadline as ordered could lead to the dismissal of your case. Therefore, it’s crucial to carefully assess your financial situation and ability to meet the proposed installment plan before submitting this application.
Who Qualifies for a Chapter 7 Fee Waiver?
First and foremost, it’s important to understand that bankruptcy filing fees generally cannot be waived in Chapter 13 cases. However, for Chapter 7 cases, a fee waiver may be granted under certain circumstances. Eligibility hinges upon an assessment of your unique financial circumstances.
If you are filing for Chapter 7 bankruptcy, a fee waiver may be attainable if your combined family income is less than 150% of the official poverty line and you cannot pay in installments. You will need to complete the “Application to Have the Chapter 7 Filing Fee Waived” (Form 103B) and provide information about your family size, income, monthly expenses, bank accounts, personal property, etc. The bankruptcy court will review your applicaiton to determine whether to grant the fee waiver.
Unfortunately, applying for a waiver doesn’t guarantee approval. At 605 Bankruptcy, we are prepared to guide you through the application process, ensuring all necessary information is provided. Connect with our firm today to learn how we can increase your chances of a favorable outcome.
