Cost of a Bankruptcy

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Cost of a Bankruptcy

The cost of a bankruptcy and a consumer proposal are regulated by the Government.

This Bankruptcy Calculator will tell you the exact cost of a bankruptcy and how long you will be in bankruptcy.

Cost of a bankruptcy:

The Office of the Superintendent of Bankruptcy, an agency of the Federal Government,  regulates the cost of a bankruptcy, which has a minimum cost of approximately $1,800.00.  This can be paid at the rate of $200.00 a month over nine months.

Each year the Office of the Superindent of Bankruptcy calculates the amount of money a person has to pay, adjusted to take into consideration the cost of living.   These Surplus Income Standards are given to trustees for them to follow.

The broad concept is that a person’s first obligation is to provide for his family and after that half of any “excess income” is paid to the trustee for the benefit of trustee costs and payments to the creditors.

The vast majority of people filing bankruptcy pay the minimum of $1,800.00 and are discharged, or out of bankruptcy in nine months.

The rules on how long a person will be in bankruptcy:

– 9 month automatic discharge for first time bankrupts who fulfill all their duties and who do not have excess income. (Required monthly payment of less than $100.00 per month)

– 21 months (or more at the court’s discretion) for first time bankrupts who fulfill all their duties. and who have excess income. (Required monthly payment of $100.00 per month or greater)

-24 months for second time bankrupts who do not have excess income.(Required monthly payment of less than $100.00 per month)

-36 months for second time bankrupts who have excess income. (Required monthly payment of $100.00 per month or greater)

-Bankrupts with personal income tax debt of $200,000.00 or more representing 75 percent or more of total unsecured claims, are not eligible for an automatic discharge. They must go to court for an adjudication.

Cost of a consumer proposal:

The cost of a consumer proposal is also regulated by the Office of the Superintendent of Bankruptcy and comes out of the payments the person has agreed to  make towards satisfying the terms of the consumer proposal.


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