How much does it cost to go bankrupt in Ontario?

How much it will cost to go bankrupt in Ontario depends on a number of factors, including your monthly income, what assets you own, the size of your family, and whether or not you have been bankrupt before, as explained below.

First, in most cases you will be required to make a contribution to your bankruptcy estate each month to cover the government filing fees, mailing costs, court fees, and other administrative costs during a bankruptcy.

Next, you are required to pay a portion of your surplus income, as defined by the government, into your estate. If you and your family earn over a certain amount each month, you lose a portion of your earnings over that limit. The calculation is reasonably complicated, so we suggest you bring your recent pay stubs to your meeting with your trustee so that they can estimate the amount of surplus income payments you will be required to make while bankrupt.

Third, you will lose all of your non-exempt assets (see our bankruptcy exemptions page for a list of assets you can keep).

Fourth, you will lose any tax refunds and GST credits you would otherwise receive during the bankruptcy period. (Your trustee will explain how taxes work in a bankruptcy in more detail).

Finally, you will lose any windfalls you receive or become entitled to during the bankruptcy period. For example, if you inherit money while bankrupt, or win the lottery, that money must be surrendered to the trustee.

The minimum bankruptcy period in Ontario is nine months, but if you have surplus income, or if you were previously bankrupt, your bankruptcy could last for 21, 24, or 36 months depending on your circumstances.

The amount you will pay while bankrupt will depend on your monthly take home pay, your family size, and your assets. To establish how much it will cost to go bankrupt in Ontario, contact an Ontario bankruptcy trustee today.