Serving Kentville and Halifax Areas

Call: 855-733-3032 / 902-365-3032

Bankruptcy Cost calculator

One of the most common questions we hear is “How much does it cost to file for bankruptcy?”.  You would think that should be a straightforward answer.  Unfortunately, the answer is “It depends on your situation”. The income you earn and what you have for realizable assets all factor in.

The one part I can help you understand is “Surplus Income”.  Directive 11R2 of the Bankruptcy and Insolvency Act defines surplus income as “the portion of a bankrupt’s total income (from all sources) that exceeds that which is necessary to enable the bankrupt to maintain a reasonable standard of living, having regard to the applicable Standards established by the Superintendent of Bankruptcy. The Office of the Superintendent of Bankruptcy sets a net monthly income threshold based on the number of people in you family.  Bankruptcy trustees have no discretion in these calcuations – they are set by the government.

Surplus income also affects how long you will be in bankruptcy.  If your surplus income each month is greater than $200 (meaning you are paying the bankruptcy trustee more than $100 per month in surplus income payments), your bankruptcy is automatically extended. A first bankruptcy is automatically extended for 12 months to 21 months.  A second bankruptcy with surplus income is extended to a total of 36 months.

This calculator is to give you an idea of where you stand.  The calculations become more complex when one spouse is filing and the other is not. As well, if  your income is below the Standards  you will still need to pay for your bankruptcy and the trustee will work with you to find a manageable way to do so.  For these reasons talking to a Licensed Insolvency Trustee is key.

Step 1: Enter the number of people in your family

Select Family Size (including yourself):

*Your Monthly Income Threshold is: $2,248

*The monthly income threshold defines the portion of your income that you are allowed to keep. Thresholds are set by the Superintendent of Bankruptcy and are based on your family size.

Step 2: Enter Your Monthly Family Income

Step 3: Enter Your Monthly Family Deductions

Calculate Surplus Income Payment

Monthly Surplus Income Payment=$0.00

The actual calculation for surplus income can be quite complicated and can affect the length of your bankruptcy.

 If your surplus income is more than you can afford each month, talk to us about a consumer proposal as a way to lower your monthly payments.