What if I Can’t Afford to File for Bankruptcy?

Margaret, AL–If you’re a debtor in Alabama who is seeking bankruptcy protection, you may be required to pay a filing fee in order to initiate the process. The bankruptcy filing fee usually runs about $335 in Alabama, though it does depend on the type of bankruptcy you file for. 

Upon filing your bankruptcy petition, you’ll be expected to satisfy this fee either with cash, a cashier’s check, or a money order, though you’ll need to check with your clerk’s office to find out what it considers to be acceptable forms of payment. In addition to paying filing fees, you’ll also incur the cost of a Margaret, Alabama bankruptcy lawyer should you decide to retain legal aid. But, what if you can’t afford to file for bankruptcy?

Can’t pay your bankruptcy filing fee? You may qualify to have it waived.

Although you don’t have to be flat broke to qualify for bankruptcy, many people seeking bankruptcy protection are struggling financially and can’t afford to pay the filing fee. Fortunately, the bankruptcy court will sometimes allow this fee to be waived or let you pay it in installments. 

In order to qualify to have your bankruptcy filing fee waived, you need to be filing for Chapter 7 bankruptcy, and “your income [must be] less than 150% of the official poverty line that applies to your family size,” according to the U.S. Courts website (1). Paying the fee in installments must also not be an option. 

If you’d like the court to consider waiving your filing fee, you’ll need to submit Form 103B (Application to Have the Chapter 7 Filing Fee Waived) with your bankruptcy petition. In the event you don’t qualify to have the fee waived, you can use Form 103A (Application for Individuals to Pay the Filing Fee in Installments) to pay the fee in installments.

What if I can’t afford to hire an Alabama bankruptcy attorney near me?

Bankruptcy attorneys help debtors understand the bankruptcy process and get their forms filed correctly. They also keep them up to date on their case and advise them on the actions they should take. But hiring a lawyer does cost money. Fortunately, some Alabama bankruptcy lawyers will work with their clients in terms of how they get paid so that they are able to receive the legal services they need. 

If you can’t afford to hire a bankruptcy attorney in Alabama right now, you can still contact Hill, Gossett, Kemp & Hufford, P.C. to find out if they have an option that works for you. 

Have questions about this article or a legal concern? Call 800-672-3103.

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500

Springville Office 

6441 U.S. Highway 11

Springville, Alabama 35146

Phone: (205) 467-2225

Source:

1. https://www.uscourts.gov/sites/default/files/b_101.pdf