Bankruptcy Fees in Ontario – What If I Can’t Afford to Go Bankrupt?

| Category: Bankruptcy in Ontario
Category: Bankruptcy in Ontario

Question: What happens if one cannot pay the Ontario bankruptcy fees charged by the trustee? $200/month for 9 months will mean we don’t eat or have heat or some other necessity. What happens then?

bankruptcy fees | trustee feeAnswer: All trustee firms in Ontario are private companies, so they require a contribution from you to cover the costs of administering your bankruptcy.  In addition, the trustee must incur costs to mail the documents to your creditors, and to complete other duties.

However, all trustees will work with you to come up with a payment arrangement that works for you.  Here are some things to consider:

First, what are you currently paying to service your debts?  Once you file bankruptcy in Ontario you are no longer making payments on your unsecured debts, so in most cases the cost of bankruptcy is much less than what you are currently paying.

Second, the reason most people file for bankruptcy is to prevent their wages from being garnisheed.  If you are not currently working, you have no wages to garnishee, so it may not be necessary for you to file bankruptcy at this time.

Third, your Ontario bankruptcy trustee will explain all of your options, so it may not be necessary to file bankruptcy. If your debt payments are eating up a fair portion of your pay, contact a bankruptcy trustee today for help.