When you're ready to declare bankruptcy, it's normal to worry about how much a personal bankruptcy will cost. The consequences of personal bankruptcy are manifold, but the money issue is the most worrying. Already in debt, personal bankruptcy is what we hope will finally give us some breathing space.
Our financial advisors are happy to share their expertise with you. To find out how much a personal bankruptcywe'll show you how the managing agent's fees are set and any other information you need.
How much does personal bankruptcy cost: trustee fees
If you wish to declare bankruptcy, you'll need to deal with an authorized trustee. Rest assured, their fees are set by the bankruptcy and insolvency act. So you don't have to worry about paying your trustee. Their salaries come directly from in the funds accumulated in your file. On the other hand, it's worth noting that a trustee's salary varies from case to case. It is therefore difficult to establish how much a personal bankruptcy costs in terms of trustee fees.
Fees depend on the amount of your assets. If your assets are less than 15,000 $, the syndic will be entitled to 100 % of the first 975 of all revenues. Then it's 35 % between 975 $ and 2000 $, and 50 % above 2000 $.
For assets in excess of 15,000 $, fees are equivalent to 7 % of assets as well as any approved remuneration by the court and creditors. Your trustee may also ask you for guarantees or deposits if the assets are insufficient or doubtful. Actual disbursements incurred are part of this remuneration.
The cost of personal bankruptcy: serious consequences
The main question to ask yourself about the cost of personal bankruptcy is not a question of figures. It's about the consequences. While it's important to know the monetary cost of personal bankruptcy, it's far more important to know the consequences.
One of the main consequences of personal bankruptcy is the effect on your credit file. No matter how much a personal bankruptcy costs, the impact on your file is immense. After a first bankruptcy, this one is added and remains in your file for 6 years, which can have a negative impact on your loans. After 2 bankruptcies, is 14 years to your file. If you wish to obtain financing during this period, it could prove difficult, and you'll need to be extra cautious.
It's also worth noting that personal bankruptcy is not your only option. An experienced financial advisor may recommend consumer proposal or even debt consolidation, if you can afford it.
What's more, bankruptcy doesn't solve all your problems. It's not a magic solution, even if it can take a heavy weight off your shoulders. The reasons that led you to bankruptcy need to be explored in order to avoid repeating the same mistakes. We therefore strongly recommend that you call on the services of experienced financial advisors to help you get back on track. financial health as soon as possible.
If you'd like to learn more about the cost of personal bankruptcy, please contact us. An experienced member of our team will be happy to discuss your needs.
