How Much Does Bankruptcy Cost?
If you are struggling to pay your bills as they become due, bankruptcy
may be an option for you. If this is the case, you are likely interested in knowing the cost of bankruptcy. The cost of a filing a bankruptcy will depend upon many factors, such as:
- your net monthly income;
- the size of your family;
- the assets you own; and
- whether you have been previously bankrupt.
In Ontario, a single person with low income and virtually no assets will pay on average $1,800 to file a bankruptcy for the first time (payable over 9 months), however, the cost varies. Without knowing an individual’s specific situation, it’s best to book a free consultation for further information and to determine bankruptcy costs. Those searching for low cost bankruptcy help should know that most Licensed Insolvency Trustees offer a free consultation to present the options available to you.
Searching for Low Cost Bankruptcy Attorneys?
While you might be wondering about the cost of retaining a bankruptcy lawyer, know that in Canada, you can only file a bankruptcy through a Licensed Insolvency Trustee. In most cases, a lawyer is not needed. Individuals who have insufficient funds to cover the cost of bankruptcy can access The Bankruptcy Assistance Program (BAP). The BAP can assist an individual in obtaining the services of a Licensed Insolvency Trustee at a reduced rate based on their available disposable income. For those looking for low cost bankruptcy help, know that there are certain criteria in order to be eligible for the Bankruptcy Assistance Program:
- you have consulted with at least two trustees who have told you that they cannot assist you as you are unable to pay their fees;
- you are not currently incarcerated;
- you were not previously or currently involved in commercial activities where the administration of a bankruptcy could give rise to a substantial amount of administration or investigative work for the trustee, and
- you are not required to make surplus income payments to the bankruptcy estate.
For further information, or to find out specific information related to the cost of bankruptcy in Canada, you can speak with a trustee or visit the Office of the Superintendent of Bankruptcy’s website.
How Much Does it Cost to File Chapter 7 Bankruptcy?
Chapter 7 bankruptcy refers to proceedings in the United States. There are filing fees associated with this type of filing, however, this is not applicable in Canada.
What is the Average Cost to File Bankruptcy?
In Ontario, a single person with low income and virtually no assets will pay on average $1,800 to file a bankruptcy for the first time. Bankruptcy costs can be paid in monthly installments with the trustee. Situations from one individual to another differ therefore it is best to book a free consultation with a trustee to identify any potential additional costs.
How Much Does it Cost to File a Bankruptcy in Canada?
Although you may be struggling with debt, most people are often surprised that there is a cost to file for bankruptcy. The minimum bankruptcy filing cost on average in Ontario is about $1,800 for a first-time bankrupt, but the filing bankruptcy cost will depend on your situation. Most Licensed Insolvency Trustees will make payment arrangements with you over the length of your bankruptcy (nine months). There are other factors that affect the bankruptcy filing cost and will determine the amount you must pay to the trustee, such as surplus income and the value of your assets. The file for bankruptcy cost depends on your specific situation. The Office of the Superintendent of Bankruptcy (OSB) sets net monthly income thresholds for an individual or family to maintain a reasonable standard of living in Canada. What you will pay and how long you will be in bankruptcy is determined by your income compared to these thresholds. If your income exceeds the threshold, there is a requirement on your part to pay 50% of the surplus into your bankruptcy for the general benefit of your creditors. The cost of claiming bankruptcy can vary for everyone. It’s best to speak with a Licensed Insolvency Trustee for further information and to know exactly how much you will pay.
Bankruptcy Cost Definition and the Cost of Filing Bankruptcy?
When you declare bankruptcy, cost is a factor. People who are struggling financially will obviously be concerned about how much the process will cost. In your bankruptcy search cost will certainly come up and when you are researching the cost of bankruptcy notice that there are various fees that need to be paid. When filing a bankruptcy there are fees such as filing fees, court fees and other administrative fees. These all affect the filing bankruptcy cost and they vary by province. For instance, in Ontario, the minimum file for bankruptcy cost on average is about $1,800 for a first-time bankrupt. There are also other costs that need to be considered prior to filing. You may be required to pay something called surplus income. In addition to surplus income there is a possibility of losing any non-exempt assets. It is best to speak with a trustee to determine the potential costs and implications.
Cost of Bankruptcy Chapter 11
Chapter 11 bankruptcy refers to proceedings in the United States. In a chapter 11 filing, the debtor negotiates with their creditors to alter the terms of a loan or loans without having to liquidate their assets. In Canada, the business bankruptcy cost will vary widely depending on the complexity, attorney’s fees and the number of creditors. If you are interested in the business bankruptcy cost for your situation, you will need to speak with a trustee.