Does it cost money to file bankruptcy in Alberta or does the government cover it?
Cost
Posted on Thursday, November 23, 2006
posted by Questions @ 3:56 pm
1 Expert Comment:
At November 23, 2006 |
4:06 pm
, Barton Goth, GCO Inc. Bankruptcy Trustees Said...
Yes, it does cost money to file a bankruptcy, but usually the cost is marginal compared to the amount of debt.
There are a number of things that must be factored into calculating what a bankruptcy will cost.
First, there is a minimum cost that is set by the trustee. The trustees will require you to make a minimum contribution each month for as long as you are bankrupt (which is typically between a 9 to 12 month period depending on the circumstances).
Second, there is a guideline that is sent to every trustee in Canada that determines if you qualify for the minimum cost or if you are required to make an additional payment based on your take home pay each month, and the size of your family. Essentially, the more you earn, the more you are required to pay.
Third, if you currently receive any tax refunds or GST credits you must be prepared to loose these during the bankruptcy itself.
Fourth, in some situations you may loose some of your personal property (certain RRSPs, valuable cars. etc) that are in excess of the provincial guidelines.
Clearly, the cost of a bankruptcy is dependant on a number of factors and can be substantially different for each situation. For a better idea of what you can expect based on your personal circumstances you are best to licensed trustee and they will be able to clarify the specifics.
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