What Does It Cost to Go Bankrupt in Brantford?

Print | E-mail this Article | Bookmark this Page | Watch the video 

When you file for bankruptcy in Brantford you are required to make a minimum payment each month to the trustee to cover the costs of administering your bankruptcy, including all court fees, mailings to the creditors, and other government fees.

In addition, you are required to make an additional payment based on your family income. The government sets limits on what a person is allowed to earn while bankrupt. If you exceed that limit, you are required to pay a penalty equal to half of the amount you are over the limit (unless you are more than $1,000 over the limit, in which case the penalty on the portion over $1,000 increases to 75%). The penalty is called your “surplus income”.

In other words, the more you make, the more you pay.

The limit is lower for a single person, and higher for a family, since the government assumes it costs more for a family to live.

Each month you submit your paystubs and proof of other income to the trustee, and the trustee calculates what you owe.

Before the bankruptcy starts, we will estimate your earnings over the bankruptcy period, and arrange a payment schedule that suits your budget.

For example, if we calculate that you will be required to pay $200 per month while you are bankrupt, and you get paid weekly, we will put you on a schedule where you pay $50 per week. This payment can be automatically withdrawn from your bank account, so you don’t have to worry about writing cheques or dropping off a cash payment.

The calculation of surplus income is somewhat complicated, and the limits change each year, so we recommend you bring some recent paystubs to your first meeting with the trustee in Brantford so that we can explain this calculation, and then provide an estimate for you of the cost of to go bankrupt in Brantford.

To arrange your initial no-charge consultation, please e-mail us or call us in Brantford at 519-770-4440.

back to top