What is the Cost of Bankruptcy?

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Table of ContentsDid You Know?

Monthly Contributions

Surplus Income Payments

Your Assets

Determining Your Costs

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It costs money to file bankruptcy.

The exact costs of filing for bankruptcy in Ontario can vary, depending on your monthly income, family size, as well as your assets.

First, you need to understand the different types of costs associated with filing a bankruptcy.

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Did You Know?

For each month that you are bankrupt, you are required to make a minimum contribution to your bankruptcy.

This contribution covers any administrative costs such as government fees, your bankruptcy trustee’s time, and costs for mailing documents.

Typically, you will be required to contribute around $200 each month.

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Monthly Contributions

Surplus Income PaymentsWhen it comes to surplus income payments, the more you earn, the more money you pay.

The government has set net monthly income thresholds for a person or family to maintain a reasonable standard of living in Canada. Every dollar you make above this income threshold is then subject to a surplus income payment of 50%.

Each month you must give your trustee a copy of your paystub(s) so that he or she can determine if any surplus income payments are required.

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Your Assets

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The final “cost” of bankruptcy is related to the assets you lose when you go bankrupt.

In order to be absolved of your debts you will need to surrender certain assets to your trustee. These can include:• Equity in your house• The value of a car with no loans

(over the $5,650 exemption limit)• Investments like Canada Savings

Bonds• Quarterly HST credits• Tax refunds for years you haven’t

yet filed and the year you are bankrupt

• Any RRSP contributions you have made in the last year

The cost of claiming bankruptcy in Ontario varies from case to case. The only way to get an accurate answer on exactly how much your bankruptcy will cost is to speak with a licensed bankruptcy trustee.

A trustee will review your situation and explain the debt management options available to you.

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Determining Your Costs

There is hope. You can be debt

free. Find out more about the cost of bankruptcy

Or give us a call at 310-PLAN