In lieu of paying the filing fee or filing an installment application, an individual chapter 7 debtor may file an Application to Have the Filing Fee Waived along with the bankruptcy petition. The application must conform substantially to Official Form 103B. 

The bankruptcy court may waive the chapter 7 filing fee for an individual debtor who: (a) has income less than 150 percent of the Poverty Guidelines last published by the United States Department of Health and Human Services (DHHS) applicable to a family of the size involved; and (b) is unable to pay that fee in installments.

Filing Requirements:

• Application to Have the Filing Fee Waived (Official Form 103B)
  Note: Application must be fully completed. Part 3 may be left blank IF Schedule A/B is complete and attached.

What To Do:

1. Perform routine quality control.
   • Event will set the IFPPending flag.
   • This is a reportable event.
2. Review the pleading for the necessary filing requirements noted above.
3. Have schedules been filed? If no, print the application (or use another tracking method) and hold until schedules are filed. If yes, continue.
4. Using the Poverty Guidelines chart, note the monthly income based on family size. If the average monthly income for total number of people exceeds the poverty guidelines and there are no fees due in a prior filing, upload an order denying IFP but allowing installments. If monthly income is below the poverty guidelines, continue to #5.
5. Compare the information on the application against the amounts provided in the schedules, statement of monthly income and the statement of financial affairs. Note any discrepancies.
   • Verify the number of people in the family listed on the Application to Waive #1 and Schedule J #1 & 2 (and J-2 if applicable).
   • Verify the income listed on the Application to Waive #2 to Schedule I #10. Also review the Statement of Financial Affairs #4 for additional business income and # 5 for other income (i.e., gambling income, child support, inheritance, etc.) that was not identified on Schedule I.
   • Verify the expenses listed on the Application to Waive #6 and Schedule J #22c.
   • Note the monthly net income (after expenses) on Schedule J 23c.
   • Verify the cash on hand and deposits of money listed on the Application to Waive #10 & 11 and Schedule A/B #16 & 17.
   • Verify the tax refunds owed to debtor listed on the Application to Waive #16 and Schedule A/B #28.
   • Verify attorney fees listed on the Application to Waive #17, 18 & 19 and fee disclosure.
6. Using the information noted in #4 & 5 above, determine what order to upload for the Judge's signature. You have three choices: Granting IFP, Denying IFP and Allowing Installments, and Denying IFP. If any of the numbers are close, use your best judgment when making your determination.
   1. Select Granting IFP if:
      • monthly income is less than 150% of the Poverty Guidelines, and
      • cash on hand and tax refund owed is less than several hundred dollars, and
      • attorney fees are less than $1500,* and
      • monthly net income (after expenses) is less than several hundred dollars,* and
      • there are no discrepancies that require further review.*
        *Add a note for the Judge if: 1) attorney fees are greater than $1500 - if over $1500 also note for Judge if source of compensation is from someone other than the debtor, 2) monthly net income (after expenses) is greater than several hundred dollars, and 3) there are discrepancies that require further review. This includes additional income included on the statement of financial affairs #4 and 5 that was not noted on Schedule I.
   2. Select Denying IFP and Allowing Installments and add a note for the Judge if:
      • monthly income is greater than 150% of the Poverty Guidelines, or
      • cash on hand or tax refund is greater than several hundred dollars, or
      • there are no fees due in a prior filing,** and
      • there is time remaining to pay the filing fees in installments.**
        Note: Pursuant to FRBP 1006(b)(2), the final installment shall be payable no later than 120 days after filing the petition or 180 days if cause is shown. So, if the 120/180 days has already run, the filing fee becomes due immediately.
   3. Select Denying IFP (making fee due immediately) and add a note for the Judge if 1) there are fees due in a prior filing, or 2) the time to pay in installments has already run.
7. Generate the Order. Follow the steps to upload a proposed order [Bankruptcy > Proposed Order Upload > Upload Single ]; select the correct form (refer to #6) from the Form list; add any notes; and route to the J/Sign folder. If you leave the Folder selection blank, the order will go to your CRD-inbox. If allowing installments, enter the final installment due date.
8. Docket one of the following remarks [Bankruptcy > Court Events > Remark]:
   • I have reviewed the IFP and by the current standards in this court, it would be approved. Order has been uploaded for CJF's signature.
   • I have reviewed the IFP and by the current standards in this court, it would not be approved. Order has been uploaded for CJF's signature.
9. After order is signed, CA will docket the Order. This is a reportable event.
   • Order Granting Application:[Reports > Signed Orders Report > Reference an Existing motion/application]; select granting. The fee status is automatically changed to 'IFP filing fee waived.'
   • Order Denying Application and allowing Installment Payments: [Reports > Signed Orders Report > Reference an Existing motion/application]; select denying. Answer 'yes' for Installment Payments when prompted. Set installment payment due dates. The fee status is automatically changed to 'Installments.' The FEEDUEINST flag is set.
   • Order Denying Application: [Reports > Signed Orders Report > Reference an Existing motion/application]; select denying. Answer 'no' for Installment Payments when prompted. The fee status will remain 'fee not paid.'

To Docket a Paper Filing:

1. Scan documents.
2. Review the papers for the necessary filing and noticing requirements.
3. Log into CM/ECF.
4. Select [Bankruptcy > Motions/Applications].
5. Enter the case number (e.g, xx-xxxxx).
6. Select [Waive Filing Fee (Bankruptcy Case)] from the event list.
7. Court will select the attorney filer.
8. Select the party filer.
9. Browse to select the Application to Have the Filing Fee Waived (.pdf file).
10. Modify the text as appropriate.
11. Verify the final docket text; if correct, click [Next] to submit your document(s).
    Note: The Notice of Electronic Filing displays giving you the document number. Copies of this notice are immediately e-mailed to all participants who receive electronic notification in the case.

UPDATES:

02/24/22 Removed references to BHL (Judge Ludwig) policies.

07/31/19 Added step 4: Judge Ludwig cases only: If attorney fees have been paid, then skip to 7 (upload order) and select "Denying IFP and Allowing Installments bhl."

07/31/19 Added Step 7.c. Select Denying IFP and Allowing Installments BHL if attorney fees were paid in a Judge Ludwig case. This order will prompt you to enter the installment dates.