How do I pay?
I need to declare bankruptcy on some business debts. But if my business has been closed, I am unable to work due to health problems and I have no other source of income – where am I supposed to get the money to pay the Licensed Insolvency Trustee their fee, and any equity the trustee feels is on my home?
I can’t borrow the money obviously, and if my husband pays this, we won’t have enough to live on and he will fall behind on his personal debts. He is barely making enough to cover our living expenses as it is…
While it is often a struggle one of the necessary components of filing bankruptcy is the payment of a trustee’s fee. There is no need to make payment up front, your trustee will be able to arrange for monthly payments in an effort to make the process more manageable. While not all trustee’s are the same, most are willing to extend the bankruptcy period over a longer period of time if necessary for you to be able to cover your other costs of living.
If you have non-exempt equity in your principle residence, if you want to keep the house you will be required to make payments to the trustee in lieu of this. When you have equity in the home you also have the option of re –financing the home or downsizing your current residence in an effort to free up the necessary capital. However, prior to making this decision I suggest you contact your local government’s Health & Wellness division to see if there is any type of assistance that they may be able to provide.