How much will a bankruptcy cost?

A payment is required to the trustee based on your income.

The income guidelines are determined by the Office of the Superintendent of Bankruptcy. As an example, a family of two can take home $2,2508 per month. If you bring home more than that, you are required to pay 50% of the excess to the trustee each month you are in bankruptcy.

The payment could change each month as your income increases or decreases. This can become difficult for people who work a lot of overtime. Most of the time those people choose to file a consumer proposal rather than bankruptcy.

In Windsor, Ontario, we see a lot of people who work in the Detroit area but live in the greater Windsor area. Since they are paid in US dollars, their income has to be converted into Canadian dollars based on the average monthly exchange rate before the payment required can be calculated.

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