Bankruptcy Costs & Fees
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What Does Going Bankrupt Cost in Canada?

In Canada, the cost of bankruptcy is at least $1,800. This fee is payable to the trustee for their time. It also includes administration services and the costs associated with filing the appropriate bankruptcy forms with the Court. How much a trustee may charge for their services is determined by the Office of the Superintendent of Bankruptcy (OSB).

Additional Costs and Fees of Filing for Bankruptcy

Depending on your income and the nature of your debts and assets, you may also be required to pay extra towards your debts before you’re able to obtain your bankruptcy discharge. Funds are paid to your trustee and then disbursed to creditors. While these additional funds aren’t considered a fee, they can increase what it costs to go bankrupt in Canada.

A woman talks to a credit counsellor about her financial situation

You’ll also need to pay extra towards your debts if you receive any lump sums of money while you’re working through your bankruptcy process. Lump sums of money include tax refunds, winning the lottery, or receiving an inheritance or insurance settlement.

If you need to file for bankruptcy but can’t afford the fee, the Office of the Superintendent of Bankruptcy (OSB) will help find a bankruptcy trustee who will then be assigned to your case for a reduced fee. You may be able to get help with or get an exemption from the financial cost (fees and deductible) of bankruptcy.

The amount of the fee is based on what the trustee must pay to file your bankruptcy paperwork with the Court.

 

 

 

Their staff are incredible…

Whatever your financial worries, trepidation or fear of being judged/forced into bankruptcy – get CCS to help. Their staff are incredible, couldn’t have dealt with a better group of people. They are truly dedicated to finding practical solutions, advocating for your financial future. First they provide hope, then they help and finish by delivering happiness.

Daryl

Daryl, a client of the Credit Counselling Society.

Is Bankruptcy the Right Option?

Many people wonder why it costs so much to go bankrupt and think that they need to go bankrupt because they don’t have enough money to pay their debts. Not everyone who is insolvent and unable to pay their debts needs to go bankrupt. It depends on your situation if bankruptcy is a good option or not.

Bankruptcy Alternative: Communicating with Creditors

There are a lot of situations where once a creditor is fully aware of someone’s circumstance, they no longer actively attempt to collect what is owed. There are effective ways to communicate with creditors to ask them to help you, which will stop collection calls. After the statute of limitation has been reached, a debt can no longer be legally collected.

Contact Us to Learn More About Bankruptcy

The costs and fees of bankruptcy are very similar in each province, but the rules and regulations are somewhat different. Bankruptcy laws are designed to ensure that overall costs are based on someone’s individual situation.

If you’re not sure if you need go bankrupt or not, or if communicating with your creditors might be better, contact us for more information. We can explain how bankruptcy rules affect debt collection in your province and what your options are for dealing with your debts.

Discover your options

Between financial difficulty and insolvency are many options. Our credit counsellors specialize in helping you explore your options and discover which one will work best for you.

Get the clarity you need.

Speak with a non-profit credit counsellor.

When things get really tough and there doesn’t seem to be any hope, it can be helpful to sit down with a knowledgeable credit counsellor who can talk through all your options and make a plan to resolve your difficulties. Many are surprised at the number of options available besides bankruptcy. Once you can see your way out, you can regain your peace of mind and move forward with confidence.

Get Some Help – It’s Free

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Related Topics

Getting Rid of Debt

We’re happy to help you figure out your options. There are more than you might think.

Insolvency Options

Canada has 2 insolvency options, a consumer proposal or bankruptcy. Find out how they stack up.

Credit Counselling

Are you curious about what credit counselling is or how it works? Here’s what you need to know.