trustee advice

February 10th, 2006 by Questions

I went to a trustee to get advice. I thought declaring bankrupcy would give me relief from the constant calls, letters and having to go to court.I will never be able to pay my huge debt. I explained to the trustee my situation. I owe 45,000 and my income is 700/ month for the rest of my life. .He told me that I could not afford to go bankrupt. Then he tells me that his firm would not handle my bankruptcy.He estimated the fees for handling my bankrutcy would be around 6,500. After I pay my rent there is about 200 /month left for food,utilities etc.Should I believe this man that I can’t afford to go bankrupt? It seems whacky to me but maybe it is true. Should I try another Trustee or will I get the same answer. Thank you

Questions

One Response to “trustee advice”



, A licensed trustee said:

In your case you probably should contact a licensed trustee for a second opinion.

Most trustees in Canada require a minimum payment of approximately $1,500 over the course of a nine month bankruptcy. In addition you lose tax refunds, GST credits and assets (such as certain RRSPS) which may be why the trustee told you the bankruptcy would cost $6,500.

Since you are on a fixed income, it is doubtful that the creditors will attempt to garnishee your income, so the trustee is probably correct in saying that you do not require the protection of a bankruptcy.

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