Title 11 in the United States Code is an area of the law that many consumers and debtors throughout the United States have become intimately familiar with – The Bankruptcy Code. Bankruptcy is the legal process of liquidating, repaying, or eliminating a large portion or all of a person's debt. There are many legal and financial implications associated with filing that many people are unaware of, including the filing fees associated with each individual chapter.

One of the most common forms of consumer bankruptcy is Chapter 7. A consumer uses this form of bankruptcy to eliminate or drastically reduce their debt in cases where they are unlikely able to pay back their debt. This form of debt relief will begin when a debtor files a petition with the respective bankruptcy court for their geographic location. The debtor will then provide the court with information of all financial affairs and schedules, including information about creditors, debts owed, sources of income, property, and living expenses. From here, with help from your bankruptcy attorney, you should be able to move forward with paying the filing fees and successfully alleviating your debt.

For a Chapter 7 bankruptcy petition, a debtor will most likely have to pay a filing fee of $306. To break down this fee, only $245 is for the case filing, $46 is for miscellaneous administrative fees, and $15 is for a trustee surcharge. There are several exceptions to this rule, however. Under Section 418 of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the filing fee may be waived for individuals who have an income 150 percent below the poverty line and are unable to pay the fee in installments. In cases such as this, family size is also taken into consideration by the district court that can waive the Chapter 7 filing fee. Debtors also have the option to pay this fee in installments, with the court's approval. This option is mainly available to those who are unable to pay the filing fee in full. According to 28 U.S.C. § 1930(a); Fed. R. Bankr. P. 1006(b); Bankruptcy Court Miscellaneous Fee Schedule, Item 8, a person must make all payments within four installments and no later than 120 days after filing. In rare cases, a court may extend this period to 180 days with proof of financial inability.

Chapter 13 bankruptcy, another frequently used debt relief strategy under the Bankruptcy Code, can be a much more time consuming process in the sense that it requires a debtor to create a payment plan over the course of several years. For a person who has a higher amount of income than the state in which he or she resides, Chapter 13 bankruptcy is likely to be the better option. This form of bankruptcy allows the debtor to restructure his or her debt into affordable payments each month for a three to five year period. Once a person has retained the legal services of a bankruptcy lawyer and has made the decision to proactively tackle their debt, they can proceed with filing the petition.

The filing fees for Chapter 13 bankruptcy are $281 in total – $235 for the case filing fee and $46 for miscellaneous administrative fees. This chapter of bankruptcy also allows debtors to request staggered payments with the court; these payments must be paid within 120 days of the filing and in no more than four installments. At the time of filing, the debtor must provide detailed information regarding creditors and the amounts and natures of the claims, the debtor's source of income, property, and living expenses. In addition to providing the benefit of an "automatic stay" on collection actions against the person filing, Chapter 13 bankruptcy provides a special type of "stay" on collections against a person who is liable along with the debtor. Additionally, Chapter 13 bankruptcy petition that is filed before a foreclosure sale is completed by a mortgage company may save a debtor's home and give them enough time to catch up on past payments.

While the filing fees for bankruptcy may appear to be too much for a debtor to handle, the benefits and rewards that may follow soon after the filing is complete may make the cost worthwhile. It is important that you speak with a local bankruptcy attorney before making your decision to file for bankruptcy or fight against your unwanted debt. Bankruptcy may not be the correct option for everyone, and it is best to explore all of the choices available in their state.