How much does it cost to go bankrupt?
You are in financial trouble and now you find out it will cost money to go bankruptcy. How do you find out how much it will cost you?
Very often trustees will quote a monthly fee. This fee is usually a base fee that will cover the minimum costs of administrating a file. This can be misleading because the cost of the bankruptcy will be your assets and will also be based on your household income.
If you think you have no assets and your income is below a certain level, then yes, all you might pay would be the monthly fee. If for example, you have RSPs, house equity or a car valued over the exemption amount, then you might have to pay more or lose those assets. If your income is over the Superintendent of Bankruptcy’s standards, then you also might have to pay more.
This is just a short glimpse into what is discussed at an initial consultation at our London office. If you need to talk to someone about your financial troubles, call us at 519-435-1500 to set up an appointment for a free initial consultation.
