While the economy has rebounded in many ways from where it was years ago, it may not feel like it for many Colorado residents. Prices of goods and services continue to rise, which results in an increase in monthly bills, despite the fact that a person's income may not be rising to offset the increase in expenses.
When the bills mount up and become unmanageable, individuals may be looking at filing for bankruptcy in order to discharge their debt and regain control over their finances. While bankruptcy can be an effective option to eliminate debt, individuals should understand the requirements they must meet to file a bankruptcy petition.
For instance, one common question individuals have is whether they are required to pay a fee when they file a bankruptcy petition. Under federal law, there is a requirement to pay a fee at the time of filing. However, there are exceptions that may apply in certain circumstances.
If a person is unable to pay the full fee, for example, he or she may be able to pay the fee in installment payments. Forms are available to accomplish these payments, which need to be filled out by the person who requests to make payments in installments. Typically, installment payments are made over a four-month period.
In certain cases, individuals may also be able to request that their filing fee be waived. In order to get a waiver, individuals must meet certain criteria under federal law. Accordingly, individuals who feel they are unable to pay the fee should be aware of this option, in order that they do not forego the effective option of filing for bankruptcy out of the fear of paying the filing fee.
Source: United States Bankruptcy Court, "Frequently asked questions," accessed on Nov. 22, 2014