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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Living Costs During Bankruptcy

I am a restaurant owner. My business just filed bankruptcy, and I am now unemployed. Personal guarantees will be called in forcing me into personal bankruptcy. I have some savings, but very little prospect of employment during the banruptcy period. Will the trustee allow a reserve of savings to cover minimal living expenses, or am I only allowed actual income during the bankruptcy.

Posted from: Ontario

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One Response to “Living Costs During Bankruptcy”

A licensed trustee said...

The Bankruptcy and Insolvency Act won’t allow you “savings” to cover your living costs during the 9 month procedure. Most trustees will allow sufficient funds to pay next month’s rent and other living costs when you file, but they won’t let you keep much more than that. Instead, the trustee will likely suggest you delay filing until you have a stable source of income. If that means you use up all of your savings while you are looking for work, well there’s not much anyone can do about that.