Cost of Bankruptcy

What are the Costs of Bankruptcy?

Bankruptcy Canada

Bankruptcy Costs

There is a basic minimum cost to file for bankruptcy. This cost will differ based on the type of assignment, whether it is a 1st, 2nd or more times you are filing.  It will also depend on your level of income based on the Superintendent of Bankruptcy guidelines.

Payments are usually broken down into reasonable monthly payments to allow an individual to pay the bankruptcy fee while they are being protected from their creditors.  The payments are often far more reasonable then people expect.


Most Trustees in Canada will require a base contribution each month that you are bankrupt.  The average contribution across Canada is approximately $150-200 per month, but could be more or less depending on your situation.     Bankruptcy Trustees are licensed by the Federal government but are independent businesses, therefore they do not receive funding from your creditors.  They simply cover their basic administrative costs through the costs of filing for bankruptcy.

Surplus Income

If your income is over the surplus income set by the government, you are required to make a surplus income payment.  This will mean, each month you submit Proof of Income (copies of paystubs) to your trustee who will calculate your surplus income.  Your bankruptcy will be extended for an extra year, if your income during the first 7 months of Bankruptcy is more than $200 over the limit per month. For a first time bankrupt, if you have surplus income, your bankruptcy will be extended 9 months to 21 months, and you will be required to make those income payments for the entire 21 months.  If however, you have significant surplus income, it may be better to consider a Consumer Proposal as an alternative.


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