How much does filing bankruptcy cost?

The cost of filing a first time bankruptcy are set out under the Bankruptcy and Insolvency Act. Therefore, the cost of filing your bankruptcy should be the same anywhere in Canada.  

There are several minimum direct costs associated with filing bankruptcy. They are set out below. 

  $75 payment for filing your documents with the Office of the Superintendent of
      Bankruptcy
 

  $85 fee for your mandatory First Counselling Sessions 

  $100 fee for out-of-pocket expenses 

  $85 fee for your mandatory Second Counselling Sessions 

  $975 minimum fee for the services of your Trustee

  $50 payment for Bankruptcy Court if a discharge hearing is required 

In addition, harmonized sales tax (HST) will be charged on all fees. 

A Summary Administration Bankruptcy in Canada, with no Surplus Income requirements, the minimum calculated cost for filing bankruptcy would be about $1,800. Your cost of filing bankruptcy may be higher than the minimum amount noted above depending on the Province in which you file, the size of the city you live in, the length of time you take to pay, and the nature of your Trustee office requirements. 

The cost of your bankruptcy will increase by the amount of your Bankruptcy Surplus Income you must pay. 

The cost of your bankruptcy will increase by the realizable value of any nonexempt assets which will also form part of your bankrupt estate. 

Depending on your current income and household circumstances most Trustees will arrange for you to pay your minimum filing fees with voluntary monthly payments.

In an Ordinary Administration Bankruptcy the fee of your Licensed Trustee In Bankruptcy is based on chargeable time. In addition, there will be expenses such as legal costs, and expenses related to appraisals, and the realization of your assets. The fees in an Ordinary Administration must be approved at 3 separate levels by: 

  1. an Inspector of your bankrupt estate, if appointed
  2. an Official Receiver in the Office of the Superintendent of Bankruptcy
  3. a Registrar in Bankruptcy Court.

After all approvals are received, the Trustee is paid and the rest of the money, if any, is ditributed to the creditors who filed valid claims in your bankrupt estate with the Trustee.