Bankruptcy Law

What are the fees and costs associated with declaring bankruptcy?

You already feel like you are drowning in debt.  How can you afford to declare bankruptcy if there are fees associated with filing?  How can you pay your trustee in bankruptcy?  

Yes, it’s true: it costs money to file for bankruptcy.  In fact, the fees are approximately $200 to $250 per month for a minimum of 9 months (longer if you don’t qualify for automatic discharge after 9 months).  That means you will pay a minimum of $1,800 to declare bankruptcy.

Many people worry that it will be impossible to come up with the money they need to file for bankruptcy.  But don’t despair! Remember that your other debts will be cancelled by the bankruptcy proceeding.  For many people, that frees up the income that they need to pay bankruptcy fees.  And if you need to declare bankruptcy and truly can’t afford the fees, there are programs to help.

{lawyer}, a licensed trustee in bankruptcy in the {city} area, can help you to figure out whether bankruptcy is the best option for dealing with your debt and, if so, how you will make your monthly payments.  

Your initial consultation with {lawyer} is free. You have nothing to lose!  Call {lawyer} today at {tel}.

What other costs are involved in declaring bankruptcy?

There are additional costs involved, including:

• Fees for two mandatory credit counselling sessions with your trustee.
• The value of the assets that you forfeit to your trustee (the cost will vary depending on the value of assets that you own and whether any of your assets fall under the provincial exemptions).
• Any surplus payments that you are required to make to your trustee (the cost of surplus payments will depend on your monthly income and the number of dependents that you have).

The total cost of declaring bankruptcy will also vary depending on the length of time your proceedings take.  If you don’t qualify for automatic discharge after 9 months, your trustee can apply to the court for a discharge order on your behalf after 21 months.  

Before you file for bankruptcy, {lawyer} will ensure that you understand precisely how much it will cost you to do so and make sure that it is the best move for you to repair your financial situation.

How is my trustee in bankruptcy paid?

The fees charged by trustees in bankruptcy are highly regulated by the government.  In addition, all fees that your trustee charges for working on your bankruptcy proceeding must be approved on three different levels (by an inspector, by the Office of the Superintendent of Bankruptcy, which is the government department in charge of trustees, and by the bankruptcy court).  

You will make monthly payments to your trustee.  The exact amount of the payments may depend on your income and the size of your family.  Once the trustee’s fees are approved, the trustee is paid and then any additional or surplus funds will be distributed to your creditors.  

Can I represent myself in bankruptcy proceedings?

No.  You must be represented by a trustee in bankruptcy in order to file for bankruptcy or to file a credit proposal.  You cannot represent yourself and no other professional is eligible to help you.  

However, there may be other options for debt resolution that will work for you and that do not require you to hire a trustee.  {lawyer} will ensure that you understand all of your options and help you to choose the best option for your circumstances.

What does it cost to file a credit proposal?  

Filing a credit proposal costs $1,500 ($750 to file the proposal and another $750 to proceed if the proposal is accepted).  Your trustee will also retain approximately 20% of your monthly payments to cover their fees for administering your proposal.  

While a consumer proposal often lasts longer than bankruptcy proceedings, the total cost to you may be less because you retain your assets and there are no surplus payments.  {lawyer} will analyze your financial situation and help you to determine the total cost of each option.  

Contact {lawyer} today for your free initial consultation.

Don’t let the fact that there are fees involved stop you from contacting a trustee in bankruptcy today.  Your initial consultation is free.  And if you decide to proceed with bankruptcy proceedings or a consumer proposal, your trustee will help you to determine how you will pay for it.  

You can stop the cycle of mounting debt and the harassing phone calls from creditors today.  Contact {lawyer} and take the first step toward a financially stable future.