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.

What does it cost to declare bankruptcy?

Indeed, there is. It may seem counterintuitive that you’re required to pay for bankruptcy when your financial situation is dire. However, a Licensed Insolvency Trustee, like any other professional, incurs costs such as rent, staff salaries, and other operating expenses. In some instances, you may need to surrender certain assets to your trustee for liquidation. The proceeds from this liquidation could then cover the trustee’s costs.

In the majority of cases, the individual filing for bankruptcy is responsible for the costs involved. These costs, which typically amount to around $1,800, cover the trustee’s fee, court filing fee, counselling fees, among other expenses.

For those whose income is exceptionally limited, arrangements can sometimes be made to pay these fees over a duration of time without incurring any interest. This should be discussed with the trustee during the initial consultation. Conversely, those with a higher income are expected to contribute a part of their surplus income towards their creditors for the duration of their bankruptcy. This period typically lasts 21 months for a first-time bankruptcy filer with surplus income. The usual duration of a first-time bankruptcy is 9 months, but this is extended to 21 months when surplus income is involved.

Contact Rumanek & Company. 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.

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Ross Taylor
Ross Taylor
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I have been referring my clients to Carl and Jordan Rumanek for more than ten years and I am proud to know them and respect very much their values and the services they provide. There are no bad questions with Rumanek and Company - and they work hard to find a balanced solution that benefits both the creditors and the debtor. Jordan has taught me a great deal about the insolvency business!
Sharon Maxwell
Sharon Maxwell
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I am so grateful to Jordan Rumanek for the time and effort he put in to solving my bankruptcy problem. He worked well with me and my lawyer, recognized the problem and had a solution, and communicated promptly. Things were settled in a very timely manner. I would highly recommend him!
Michael Fazari
Michael Fazari
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Jordan of Rumanek & Company Ltd helped me through my default and had my bankruptcy discharged extremely quickly. The staff were knowledgeable and were beyond accommodating to my needs. I applaud all of the staff at Rumanek & Company and the way they go above and beyond to help their clients.
Sam Velarde
Sam Velarde
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Jordan Rumanek of Rumanek & Company Ltd has helped me through a difficult time in my life. The staff have gone beyond the call of duty. I appreciate all the staff at Rumanek & Company and the way they treat me. I would recommend them to anyone with financial problems.
Todd H
Todd H
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Jordan and his team took extremely good care of me from start to finish. They explained everything with great detail and dealt with everything in an efficient and professional manner. I would highly recommend them should you ever need assistance with a consumer proposal or bankruptcy.
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