Wilson Rice, Jr.

1:09-bk-00481DcbJun 15, 2009

Full text

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
WILSON RICE, JR.,
Debtor.
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Case No. 09-00481
(Chapter 7)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION AND ORDER GRANTING
APPLICATION FOR WAIVER OF THE CHAPTER 7 FILING FEE
The debtor has filed an application for waiver of the
chapter 7 filing fee (Docket Entry (“DE”) No. 3). 	For reasons
explained in more detail below, the court will grant the debtor’s
application.
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 he is from a one-
The document below is hereby signed.
Signed: June 12, 2009.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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1 	This figure assumes one month of income at the current
level of $2,700.00, with the remaining months at $1,200.00.
2 	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. 	Under the 2009 HHS
guidelines, the poverty line for a one-person family living in
the District of Columbia is $10,830 per year, making 150% of the
applicable poverty line $16,245. 	The debtor’s stated income is
below this threshold.
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person household and that he currently has a combined monthly
income of $2,700.00. 	His application also reflects, however,
that as of June 2009, the debtor’s income will be reduced to
$1,200.00, leaving him with annualized income of $15,900.00. 1
This figure is less than 150% of the applicable poverty guideline
figure maintained by the Department of Health and Human Services
for a one-person household living in the District of Columbia, as
required for waiver. 2
To qualify for waiver of the filing fee, the debtor must
also demonstrate that he is unable to pay the fee in
installments. 	According to the debtor’s application, the debtor
has current expenses of $1,215.00, which are expected to increase
to $1,715.00 by the end of June. 	Although he theoretically has
$1,485.00 in disposable monthly income from June from which to
pay the filing fee, starting in July, the debtor’s expenses will
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3	O:\TEEL\Laura\ORDERS\Waiver of Filing Fee\Order_filing fee_waiver_grant_Wilson Rice.wpd
exceed his income by $515.00. 	Given the impending substantial
reduction in the debtor’s income and a corresponding increase in
expenses that will, on a forward going basis, leave the debtor
without any monthly disposable income, the court finds that the
debtor is unable to pay the fee in installments. 	It is thus
ORDERED that the debtor’s application for waiver of the
chapter 7 filing fee (DE No. 3) is GRANTED.
[Signed and dated above.]
Copies to:
Debtor; Debtor’s Attorney; Chapter 7 Trustee; Office of United
States Trustee.
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