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What Will A Bankruptcy Cost?
A Licensed Insolvency Trustee obtains fees directly from the funds in a bankrupt estate in priority to other claims. The Trustee is only allowed to take fees at certain specified times and the fees are either reviewed and approved by the Courts or based on a tariff laid down in the Bankruptcy & Insolvency Act.
The cost to to a debtor of a fist time personal bankruptcy is approximately $1,800 for a Summary (smaller) Administration. For a second time bankruptcy, the cost is approx. $2,400. The fee will be covered by:
-Income Tax Refunds
-By sale of non-exempt assets before or during bankruptcy.
-and/or Surplus Income.
This entire area of fees is of as much concern to the Trustee as to you. It is important to obtain a clear understanding of what has been agreed, prior to any assignment in bankruptcy.