trustee fee

November 12th, 2005 by Questions

I am having financial problems . I am considering bankruptcy in the near future. How are trustee fees calculated? Is it based on the number of hours they work for their client,or is it a percentage of the debt? What is a ball park figure charged by a trustee for a typical personal bankruptcy in Canada? I just want some idea how much it will cost me. Can I expect it to cost more than $2000 dollars? I have read that trustees are flexible with their payment schedules so as not to over tax the person. If the fee is substantial it may influence what options I can afford and what I cant.

Questions

One Response to “trustee fee”



, A licensed trustee said:

The amount the trustee gets paid in a summary administration bankruptcy are set by the government. The amount you are required to contribute to your estate while bankrupt depends on a number of factors.

First, most trustees will require 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. You will be required to send the trustee copies of your pay stubs and other income each month, and each month the trustee would calculate the required surplus income payment.

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, so you should contact a licensed trustee to estimate the amount you would be required to pay if you go bankrupt.

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