Brenda A. Cunningham

1:08-bk-00426DcbJul 3, 2008

Full text

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
BRENDA A. CUNNINGHAM,
Debtor.
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Case No. 08-00426
(Chapter 7)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION AND ORDER GRANTING
APPLICATION FOR WAIVER OF THE FILING FEE
On June 22, 2008, the debtor filed an Application for Waiver
of the Chapter 7 Filing Fee for Individuals Who Cannot Pay the
Filing Fee in Full or in Installments (Docket Entry (“DE”) No.
21, re-docketed as DE No. 26). 	Pursuant to 28 U.S.C. § 1930 as
amended by § 418 of the Bankruptcy Abuse Prevention & Consumer
Protection Act of 2005, Pub. L. 109-8 (effective October 17,
2005), this court
may waive the filing fee in a case under
chapter 7 of title 11 for an individual if
the court determines that such individual has
income less than 150 percent of the income
official poverty line . . . applicable to a
family of the size involved and is unable to
pay that fee in installments.
28 U.S.C. § 1930(f)(1).
The debtor’s application reflects that the debtor is from a
The order below is hereby signed.
Signed: July 01, 2008.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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1 	Section 1930(f) specifies that the “official poverty
line” figures used for purposes of the chapter 7 fee waiver refer
to those “defined by the Office of Management and Budget [“OMB”],
and revised annually in accordance with [§] 673(2) of the Omnibus
Reconciliation Act of 1981 . . . .” 	The Judicial Conference of
the United States interprets this language to refer to the
poverty guidelines maintained annually by the U.S. Department of
Health and Human Services (“HHS”) because the OMB has never
issued poverty guidelines or thresholds. 	According to the 2008
HHS Poverty Guidelines, the income official poverty line for a
family of two in the District of Columbia is $14,000.00, and 150%
of that figure is $21,000.00.
2
two-person family, has a combined monthly income of $882.31, and
monthly expenses of $581.00, leaving her with monthly disposable
income of $301.31. 	The debtor’s annual income of $10,587.72 is
less than 150% of the income official poverty line applicable to
a family of two under the 2008 Health & Human Services Poverty
Guidelines, as required for waiver. 1 	Notwithstanding that the
debtor’s income exceeds her stated expenses by $301.31, a review
of the debtor’s Schedule J reveals that the debtor has likely
underestimated her expenses for basic necessities such that the
court deems it inappropriate to treat the $301.31 in stated
disposable income as available for payment of the filing fee in
installments. 	For example, the debtor has allowed only $162.00
for the expense of food for a family of two, only $20.00 for
transportation, and only $37.00 for recreation, newspapers, and
magazines. 	It is highly probable that the debtor’s actual
expenses for these items already exceed the amounts listed, and
in any event, a modest fluctuation in the debtor’s transportation
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3	O:\TEEL\Laura\ORDERS\Waiver of Filing Fee\order_filing fee_waiver_grant -Cunningham.wpd
or food costs in any given month could easily offset the entire
$301.31 amount. 	As such, the court finds that the debtor has
insufficient monthly disposable income available to pay the
filing fee in installments. 	Accordingly, it is
ORDERED that the debtor’s Application for Waiver of the
Chapter 7 Filing Fee (DE Nos. 21 & 26) is GRANTED.
[Signed and dated above.]
Copies to:
Debtor; Debtor’s attorney; Chapter 7 Trustee; Office of United
States Trustee.
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