bankruptcy cost in Canada

Bankruptcy cost Ontario – #1 Ultimate guide

In this authoritative guide, you will learn all about the bankruptcy cost Ontario. What is the cost to file bankruptcy? At Rusinek & Associates Inc, we are committed to providing low-cost debt relief to everyone struggling with unmanageable debt.

The picture above shows what others charge for a simple bankruptcy, but at our firm, we would NEVER ask you to pay this amount if your income is low and your situation is straightforward. Ask us if you might qualify to pay less than half this amount to become debt free!

As a licensed insolvency trustee, we have been helping individuals and families across Ontario since 1991. Our smaller size allows us to offer personalized, affordable debt elimination plans and a caring, attentive approach. We are one of the few trustee firms that can, in certain circumstances, reduce the bankruptcy payments required to file a first-time bankruptcy by almost 50% versus what others are asking.

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Factors Determining Bankruptcy Cost Ontario

Bankruptcy costs in Canada are not fixed; they vary based on individual circumstances. The key factors include:

  • Income: Your income level determines the minimum monthly bankruptcy contribution and surplus income payments. The higher your income, the more you may need to pay.
  • Expenses: The cost of living expenses can impact the surplus income calculation. Essential expenses are taken into account when determining your surplus income payments.
  • Family Size: The number of dependents affects the government-set income thresholds. Larger families have higher income thresholds, potentially reducing surplus income payments.
  • Assets: The value of assets can influence the cost of bankruptcy. Some assets may need to be surrendered in a bankruptcy, but exemptions exist under bankruptcy law.

Components of Bankruptcy Cost Ontario

Bankruptcy costs in Canada comprise three main components:

  1. Minimum Monthly Contribution: This covers administrative costs, trustee fees, and government fees. At Rusinek & Associates Inc, we can potentially reduce this contribution for first-time bankruptcies.
  2. Surplus Income Payments: If your income exceeds the government-set threshold, you are required to make surplus income payments. These payments increase the cost of bankruptcy and extend the period you remain in bankruptcy.
  3. Assets, GST and tax refunds: You may need to surrender certain assets in bankruptcy. The value of these assets can add to the cost of bankruptcy if you wish to retain them.
Minimum Monthly ContributionCovers administrative, trustee, and government fees
Surplus Income PaymentsRequired if income exceeds government-set threshold
AssetsCertain assets may need to be surrendered in bankruptcy

Debt Relief Solutions by Rusinek & Associates Inc

At Rusinek & Associates Inc, we offer several debt relief solutions:

  • Stop Garnishments: Using our authority granted under the legislation, we can help stop wage garnishments, providing immediate relief.
  • Debt Consolidation: Consolidate your debts into one manageable monthly payment, reducing the stress of dealing with multiple creditors, but interest charges continue to mount.
  • Consumer Proposal: A legal process to negotiate a payment plan with your creditors. This can be a viable alternative to bankruptcy. This consolidates your payment into one manageable monthly expense to cover all unsecured debt, and the interest stops too.
  • Bankruptcy: A legal process to eliminate your unsecured debts. While it has the most significant impact on your credit, it offers a fresh start for those with no other good options to get out of debt.
  • Informal Arrangement with Creditors: Negotiate payment terms directly with your creditors, avoiding formal proceedings.

Managing bankruptcy cost Ontario

Managing bankruptcy costs effectively is crucial. Here are some tips:

  • Consult a Licensed Insolvency Trustee: At Rusinek & Associates Inc, we can provide personalized guidance to manage your bankruptcy costs. Our expertise and smaller size allow us to offer solutions tailored to your unique situation.
  • Understand Your Options: Explore all debt relief solutions, not just bankruptcy. Whether it’s a consumer proposal, debt consolidation, or an informal arrangement with creditors, we can help you understand and navigate your options.
  • Plan Your Finances: Create a budget to manage your income, expenses, and debts. Financial planning is a critical step in avoiding future debt problems.

In conclusion, understanding bankruptcy costs and exploring all your options is essential when dealing with unmanageable debt. At Rusinek & Associates Inc, we are here to help you navigate this challenging journey. Our personalized approach and potential to reduce bankruptcy payments for first-time filings set us apart. Contact us for a free consultation today.

Contact Rusinek & Associates Inc

If you’re struggling with debt and considering bankruptcy, it’s important to understand the costs involved and explore all your options. At Rusinek & Associates Inc, we’re here to help. Contact us today for a free consultation and let us guide you towards financial freedom.

Remember, bankruptcy is not the only solution. We offer a range of debt relief services, including consumer proposals and debt consolidation. As a smaller, community-trusted firm, we can tailor our services to your unique situation and, in certain circumstances, reduce the bankruptcy payments required to file a first-time bankruptcy by almost 50%. Don’t let debt control your life – reach out to Rusinek & Associates Inc today. Contact us now.

About Author

Patrick Bloomfield

Patrick Bloomfield

Licensed since 1996, Patrick has guided thousands of people to become debt free.

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