How much does it cost to file bankruptcy in Canada?
A basic first bankruptcy with no surplus income and no non-exempt assets often costs a minimum trustee contribution of around $1,800, paid over 9 months. Costs rise with surplus income payments and any non-exempt asset equity the trustee realizes.
Are Licensed Insolvency Trustee fees regulated?
Yes. Trustee fees in a summary administration bankruptcy are set by a government tariff under the Bankruptcy and Insolvency Act, so trustees cannot charge whatever they want. The fees are paid out of your required contributions, not billed separately.
What increases the cost of bankruptcy?
Surplus income payments (50 percent of income over the OSB threshold), non-exempt assets, and prior bankruptcies all increase the cost and can extend the duration from 9 months to 21, 24, or 36 months.
Can I pay for bankruptcy in installments?
Yes. Your required contributions, including any surplus income and asset payments, are typically paid monthly to your trustee over the bankruptcy period rather than as a single up-front lump sum.