approx. how much does it cost in total to file a bankruptcy
May 21st, 2008 by Questions
How much in total approx will it cost to file bankruptcy in b.c.
Posted from: British Columbia
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May 22, 2008 at 8:36 am, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:
To get a quote you are best to contact a local trustee as it varies slightly from office to office.
But overall you will find that it is difficult to quote an exact price without actually sitting down and reviewing a number of aspects of your situation. This is because the cost depends on a number of factors.
First, you will be required you to make a minimum contribution each month for as long as you are bankrupt; the minimum bankruptcy period is nine months.
Second, you are required to make an additional payment based on your take home pay each month, and the size of your family. The more you earn, the more you are required to pay each month. This is based on a Guideline that is sent to every trustee in Canada and is a calculation that must be done every month.
Third, you would lose any tax refunds or GST credits you are otherwise eligible for during the bankruptcy period.
Fourth, you lose certain assets (certain RRSPs, valuable cars. etc) that you own when you go bankrupt.
As you can see, the cost of a bankruptcy depends on a number of factors. To get an idea of what you can expect your brother would pay if he were to file a bankruptcy you should contact licensed trustee in your area and he will be able to examine things and provide you an with an expectation of what would be required.