|
What does it cost to file bankruptcy in Kitchener?
When you file for bankruptcy in Kitchener you are required to make a minimum contribution, or payment, each month. The payment is made to your Kitchener bankruptcy trustee. The payment covers the costs of administering your bankruptcy, including all court fees, mailings to the creditors, and other government fees, and the balance of the funds are distributed to your creditors (the people you owe money to) at the end of your bankruptcy.
The cost of a bankruptcy in Kitchener will depend on the size of your family, and your monthly take home pay.
The government sets limits on what a person is allowed to earn while bankrupt. If you go over that limit, you are required to make a payment equal to half of the amount you are over the limit (unless you are more than $1,000 over the limit, in which case the penalty on the portion over $1,000 increases to 75%). The penalty is called your “surplus income”.
The concept is simple: the more you make, the more you pay. It is important to understand that the cost of a bankruptcy in Kitchener will increase or decrease each month as your income rises or falls above or below the limit set by the government.
The limit is lower for a single person, and higher for a family, since the government assumes it costs more for a family to live than it costs for a single person.
Each month you are required to give copies of your pay-stubs and proof of other income to the trustee, and the trustee calculates the cost of your bankruptcy for that month.
The calculation of the cost of a bankruptcy is somewhat complicated, so before you declare bankruptcy you should meet with a bankruptcy trustee in Kitchener and ask them to explain, in detail, how the cost will be calculated in your bankruptcy.
It is important to understand that all trustees in Kitchener are licensed by the federal government, and as a result all trustees in Kitchener are paid the same for each similar bankruptcy. Trustees are paid a percentage of the amount of money in the bankruptcy (up to certain limits), so regardless of which trustee you use, all trustees are paid the same.
Therefore what the trustee is paid is not important. What is important is what you pay, so it is essential that you understand the cost of your bankruptcy, before you start the process.
Your Kitchener bankruptcy trustee will work with you to estimate your projected income during the bankruptcy period, and put you on a payment plan so that the cost of the bankruptcy is paid in full so that your bankruptcy can end on time. Your trustee will arrange the payments by pre-authorized payments so that you don’t need to worry about writing cheques or paying cash each month.
For more information, or to set up a meeting with a trustee in Kitchener, read our article on bankruptcy trustees in Kitchener.
|
