What Is The Bankruptcy Cost in Canada?
The bankruptcy cost is set by the government. In most cases the cost of bankruptcy will be $200 a month for 9 months.
However, the cost of filing bankruptcy can be more complicated because the cost can depend on how much you earn, how much you owe, and the size of your family.
Costs of Filing Bankruptcy
There are certain fees such as court fees, governmental fees for filing bankruptcy and mailing fees required for the bankruptcy process.
These fees are included in the payments to the trustee. For example, if you have no surplus income payments and have gone bankrupt for the first time you will pay $200 a month which covers all of these fees as well as the Trustee’s fees.
How Does My Income Impact The Cost of Bankruptcy?
If you make more than a threshold set by the government based on your family size you will be required to make what is known as “surplus income payments.”
A limit is set by law that depends on the size of your family. Surplus income payments are required if your income is more than the level set by the government.
If surplus income payments are required you will be required to pay a portion of your extra income to the trustee for distribution to your creditors; bankruptcy is intended to be fair for both you and your creditors.
When you meet with your trustee you should bring your latest pay stubs so the trustee can estimate what, if any, surplus income payments will be required.
How Do My Assets Impact The Cost of Bankruptcy?
While not an actual fee that you must pay in bankruptcy, you will lose any of your assets that are not protected by the provincially set bankruptcy exemptions.
For the assets you can keep, please refer to bankruptcy exemptions.
Any inheritance or other such windfalls you receive while bankrupt must also be turned over to the trustee.
Windfalls are funds you come into through luck such as lottery winnings, or as mentioned above, inheritance.
Other Costs in Bankruptcy
If you are entitled to a tax refund while you are bankrupt you will also lose these funds to the bankruptcy estate.
Want to Learn The Costs of Filing Bankruptcy in Your Case?
If you would like to speak with a professional who can help you determine how much bankruptcy will cost for your situation you can contact a local insolvency trustee to arrange a free, no obligation evaluation meeting.