Today I had a consultation with a trustee regarding bankruptcy proceedings. I explained that I was on welfare (Canada Works) and had absolutely no extra money for fees and costs. I was told that unless I could come up with thirteen hundred dollars now and one-hundred and seventy-five dollars per month, that I could not proceed with bankruptcy and should just ignore my creditors. Is there another alternative?
signed “Desperate”
The purpose of going bankrupt is to deal with your debts, and to prevent your creditors from garnisheeing your wages. Since you currently have no wages, the logical course of action would be to wait until you are back to work, and then, if necessary, go bankrupt.
If you want to go bankrupt now, you should consult other trustees. All trustees set their own payment policies. The trustee you spoke to seems very expensive; I am not aware of any trustee that would charge $1,300 up front, plus $175 per month during the bankruptcy.
Trustees are not permitted to advertise their fees, so I cannot tell you what a bankruptcy should cost, but I suggest you contact other trustees to see if they will assist you for less than the first quote you received.