There are a number of costs to go bankrupt. How much it will cost to go bankrupt in Manitoba depends on your situation.
First, you will usually need to make a contribution to your bankruptcy estate to cover the government filing fees, mailing costs, court fees, and other administrative costs of bankruptcy.
Second, you must pay a mandatory fraction of your “surplus income”, as defined by the government, into your estate. If you and your family earn over a set amount each month, you will lose a portion of your earnings over that limit. The calculation can be somewhat complicated, so we recommend bringing your recent pay stubs to your meeting with your trustee. The trustee can estimate the amount of “surplus income” payments you must 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 normally receive during the time you were bankrupt. (Your trustee will clearly explain how taxes work in a bankruptcy).
Finally, you will lose any additional funds 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 given to the trustee.
The amount you will pay while bankrupt will depend on a number of factors including your monthly take home pay, your family size, and your assets. To establish how much it will cost to go bankrupt in Manitoba, contact a Manitoba bankruptcy trustee today.