For obvious reasons, the cost of bankruptcy is always an important consideration for anyone in need of bankruptcy relief. One large component of the cost of bankruptcy is the Chapter 7 filing fee.
The United States Bankruptcy Court charges a filing fee to initiate a bankruptcy case. A filing fee is standard procedure in non-bankruptcy courts as well. The filing fee helps to pay for the costs of running the court. The fee also makes sure that the litigants have “skin in the game.”
The federal judicial district that covers people wanting to file bankruptcy in the Sacramento area is known as the “Eastern District of California.” The Chapter 7 bankruptcy filing fee in the Eastern District is currently $306. Keep in mind: the bankruptcy filing fee does change from time to time.
Some people think the filing fee for bankruptcy is too high. As a comparison, filing a civil lawsuit in Federal Court currently costs $400. Filing a civil lawsuit in State Court in Sacramento costs up to $439! As you can see, the filing fee for Chapter 7 Bankruptcy in Sacramento is right in that range.
Debtors that represent themselves can petition the court for a waiver of the filing fee. The Court will grant or deny the fee wavier depending on the debtor’s economic circumstances.
A debtor represented by an attorney will not usually be able to obtain a fee waiver. If the debtor has sufficient funds to hire an attorney, then the debtor can pay the filing fee as well. However, a debtor needing to file a case before they have sufficient funds for the filing fee can ask the Court to pay the filing fee in four payments. This helps spread the cost of filing Chapter 7 bankruptcy over time. If it is important to file your case immediately, a fee waiver might help you with the financial aspects of filing for bankruptcy.
If you need help with filing Bankruptcy in Sacramento, please call Bankruptcy Lawyer Rick Morin at (916) 333-2222.
