Does it Cost Money to Go Bankrupt?
The answer is yes. It does not make much sense that you have no money and still have to pay to go bankrupt. But a Licensed Insolvency Trustee has to pay his rent, staff and other expenses just like every other business. In some cases, there might be some of your assets that might have to be turned over to your trustee to be liquidated. This might generate enough funds to pay the costs of the trustee. In most cases, the person filing the bankruptcy will have to pay the costs of the bankruptcy which total about $1,800 and includes the trustee’s fee, court filing fee, counselling fees, etc. In cases where the income of the person filing the bankruptcy is very limited, payments of the fee may be payable over a period of time at no interest cost. Please discuss this option with the trustee at the time of the initial interview. On the other hand, high income earners are expected to contribute a portion of their surplus income to their creditors for the term of their bankruptcy (21 months for a first time bankrupt with surplus income). The normal time of the duration of a first time bankruptcy is 9 months – it is extended to 21 months due to the obligation of surplus income
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.