Going Bankrupt

May 20th, 2009 by Questions

Hi, I`m considering filing bankruptcy next month, too much stress and debt. Can I file bankruptcy with no income or can I get a family member help me pay a trustee, If I owe approximately, 30 000 in unsecured credit card and 400 in cell phone bills. How much will filing bankruptcy actually cost me? So far, I`ve been quoted for 150-165 per month for 9 months, is this true? I know banktrustees must make a living as well, and they do provide relief..Please let me know the price range..

Posted from: Ontario


One Response to “Going Bankrupt”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

The difficulty with filing a bankruptcy when you have no income is paying the trustee fee. As long as you have a family member willing to help out with the fee then there is nothing that would prevent you from being able to file.

When determining the total cost of bankruptcy there are a number of things that must be considered.

First, the trustee will require you to make a minimum contribution each month for as long as you are bankrupt; the minimum bankruptcy period is nine months. The last time I was asking around this minimum amount ranged from about $1600 to $2000, depending on the trustee. This is likely the cost you are being quoted when you call around. The only thing to be cautions of is to make sure this includes all the court fees, superintendent fees and counseling costs.

Second, you may be required to make an additional payment based on your take home pay each month, and the size of your family, this calculation is based on a guideline that is sent to every trustee in Canada and is referred to as the Superintendent Surplus Income Calculation. 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 surplus income payment.

Third, you would lose any tax refunds or GST credits you are otherwise eligible for during the bankruptcy period.

Fourth, you could lose certain assets (certain RRSPs, valuable cars. etc) that you own when you go bankrupt.

As you can see, the cost of bankruptcy depends on a number of factors.

For more information you can contact a local trustee who can give you an accurate estimate of the cost of a bankruptcy in your situation.

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