Bankruptcy Cost

The amount you are required to pay while you are bankrupt depends on a number of factors. 

The cost of filing bankruptcy in Cambridge will depend on:

  • What assets you own,
  • Whether or not you expect to receive a tax refund,
  • What you earn each month,
  • Any unusual medical or other expenses you may have such as support payments,
  • And the size of your family.

In most cases there is also a minimum contribution you will be making each month, regardless of your income. The trustee will set up a payment schedule that works for you.

For example, if you are paid weekly, the trustee can set up a pre-authorized payment plan from your bank account so that one quarter of the monthly amount is paid from your bank account each week.  For example if you’re required to pay $200 per month, this could be set up as $50 per week instead.

Having payments deducted directly out of your bank account, eliminates the need for you to have to write post dated cheques or make cash payments.

The easier way to think of the cost of bankruptcy, is this, “The more you make, the more you have to pay”. The way this is done, is through a process called “Surplus Income“.

The calculation of surplus income is somewhat complicated, so wrote a separate page which provides an explaination on how surplus income works in more detail.  We also recommend you to bring some recent paystubs to your first meeting with the trustee so that we can explain this calculation, and estimate for you the cost of your bankruptcy in Cambridge. Our bankruptcy trustee in Cambridge provides the initial consultation free of charge.