How can you “provide money to the trustee” when you’re broke ?
In many of the the trustee comments on this blog it can be read about payments to the trustee which is part of the duties of the bankrupt that have to be fulfilled before he can be discharged.
But one goes bankrupt because he’s broke, no money, possibly no work, all he owns is debt. Even if he has a job, still more money goes out than in. That is the position in which people go bankrupt, isn’t it ?
So how can he be expected to pay extra money now, thousands maybe tens of thousands of $, if he simply doesn’t and will not have them in bankruptcy?
Most people go bankrupt in Canada for protection from their creditors; in other words, they want to prevent or stop their wages from being garnisheed. If you have no wages, you don’t have any wages that can be garnisheed, and therefore you may not need to go bankrupt until you start working again.
The trustee is required to pay a filing fee to the government when a bankruptcy is filed, and the trustee is required to send information to all of your creditors, which is why trustees will require you to contribute to the cost of administering your bankruptcy estate.
Most trustees will make payment arrangements based on your situation, so we encourage you to contact a licensed trustee to determine what you would be required to contribute if you went bankrupt.