October 19th, 2007 by Questions
How mush is it to go bankrupt
October 20, 2007 at 11:45 am, Barton Goth GCO Bankruptcy Trustees said:
There is a cost to file a bankruptcy in Canada, however this cost depends on a number of factors.
The first thing to be aware of is that you will be required you to make a minimum contribution each month for as long as you are bankrupt, which is typically 9 months. This is commonly refered to as the minimum cost of the bankruptcy and can fluctuate slightly.
However, not everyon qualifies for the minimum cost. There is a guidleine that is sent to every truste in Canada must follow to determine this. This guidline is based on your take home pay each month, and the size of your family and ultimately works out so that the more you earn, the more you are required to pay each month.
These are the costs that you must directly pay, however the major indirect cost you need to be aware of relates to taxes and GST. In bankruptcy you lose any tax refunds or GST credits you are otherwise eligible for during the bankruptcy period. While we have not idea upfront if you are going to recive these types of things be aware that if you do they will be sent to the trustee for the year of bankruptcy.
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.
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