How much does a bankruptcy cost?

Bankruptcy Costs

How Much Does A Bankruptcy Cost?

All bankruptcy fees are based on rates dictated (and regulated) by the Federal Government under the Bankruptcy Insolvency Act.  Your fees could be as low as $150 per month, depending on your financial situation (income level, assets owned, etc.) and we allow you to pay these fees over a period of time. 

Best of all, instead of having to write a big pile of cheques to all of your creditors each month, once you file for protection from your creditors you’ll have only one simple payment to make each month – to your Trustee.  Many people ask us “but don’t I have to pay your firm for their services, too?”  The good news is your one easy monthly payment covers the Trustee’s costs (administrative fees, as well as court and mailing costs, etc.)  so there is nothing extra to pay.   And there is no charge for your free, confidential initial consultation. 

When does this easy monthly payment begin?  Once you advise the Trustee you would like to proceed with protection from your creditors and we compile the legal documents, you will sign in the presence of the Trustee and your paperwork will be legally commissioned and witnessed in your presence.  At the end of that meeting you will be required to make your first payment to the bankruptcy estate.  Subsequent monthly payments (for the balance of your bankruptcy) can be made by pre-authorized payment right from your bank account.  And we will even set that up for you.   It’s convenient and simple. 

How does the Trustee determine what you will pay each month?  The calculation of your monthly payment is based on a number of factors (all legislated by the Bankruptcy Insolvency Act):

• your monthly income (and that of your household)
• the assets you own
• the size of your family unit
• if you had a previous bankruptcy

In a Bankruptcy you could be under protection from your creditors for as short a period of nine months, but some bankruptcies do extend up to 36 months, depending on the factors listed above. In order to better determine what you qualify for, we recommend you meet with one of our managers for a free, no-obligation face-to-face confidential meeting at any of our 30 offices located across Ontario. Please give us a call today toll-free (from your local area code) by dialing 310-1100 or click here to request a free consultation using our web-based system.