0035 - Debt Related Queston: Bankruptcy Question # 0035

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QUESTION #0035:

Iíve read that it costs about $1,600 to declare bankruptcy, but I donít have any money! I canít pay my bills and collection agencies are calling. What do I do?



ANSWER:

The trusteeís administration costs for an estate, inclusive of registration fees, counselling fees and taxes are approximately $1,640. This amount can through funds realized on non-exempt assets, personal income tax refunds, GST credits, excess income payments, or a combination of the above. A monthly payment plan will be outlined at a free consultation.

Remember, once you declare bankruptcy, or file a consumer proposal, you stop payments directly to the creditors. This adjusts your household budget to housing, food, transportation, miscellaneous expenses, and one monthly payment to the trustee for your debts.