What Is The Cost of Bankruptcy?

Will the cost of being bankrupt be more than I can pay?

The answer depends on how much you own and earn, and your family size.

How much you own

You will lose all your money and possessions, except for the assets that are exempt in your province. For the assets you can keep, see bankruptcy exemptions.

How much you earn and your family size

You will lose part of any earnings which are considered “surplus income”– that is, anything over a limit set by legislature. The limit depends on your family size. When you see your trustee, bring your latest pay stubs, to allow the trustee to estimate how much you must pay based on surplus income.

Costs of the bankruptcy process

Bankruptcy involves administrative costs, including court fees, mailing costs, and government-set fees for filing. You will be required to pay the trustee for the administration of your estate.

Other costs

Taxes work differently in a bankruptcy, and your trustee will give you any details that apply to you. For example, any HST credits or tax refunds that would normally come to you while bankrupt will be lost to your bankrupt estate.

You will also lose any “windfalls” you receive or become entitled to while bankrupt. “Windfalls” are amounts you get by luck, such as inheritance or lottery winnings.

Cost of bankruptcy in your case

More than you can pay? You will need a bankruptcy trustee to determine exactly how much it will cost you to go bankrupt in Canada and what alternatives to bankruptcy would make sense in your case. Contact a Canada bankruptcy trustee today.

Recently Asked Questions
What is the monthly fee for declaring bankruptcy? - What is the monthly fee for declaring bankruptcy, as well as the overall cost for a 9 month period? Does 200 dollars per month include court hearing and everything else that is necessary. What would be approximate cost for someone that has no or minimum income. Is it possible to pay 1,800 in full and […]
Does cost of living affect my bankruptcy payment? - I filed for bankruptcy in Jan 2014. I was told that due to my income my payments would be $550.00 a month. I was living in northern Canada at the time and my cost of living was low. Shortly after, I had to move down to the coast for my job and my cost of […]
Do you report your income for the month you file bankruptcy? - Hello, Wondering when you file bankruptcy do you report your income for the month you filed if its already mid month. Reason I ask is because before we filed we had two paychecks out of 3 for the month of January and now upon getting our surplus income calculation sheet we noticed they included the […]

Do You Have Questions?

Contact a licensed Bankruptcy Trustee for a free, no-obligation consultation. They will help you determine how much it would cost you to go bankrupt, but also explain options other than bankruptcy that might be available to you.