How much will it cost to go bankrupt in Newfoundland?

How much it will cost to go bankrupt in Newfoundland depends on your situation. The various costs involved when you go bankrupt are explained below.

First, usually you will 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 are required to pay a fraction 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 fraction of your earnings over that limit. The calculation is quite 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 all tax refunds and GST credits you would otherwise receive during the bankruptcy period. (Your trustee can explain in more detail how taxes work in a bankruptcy).

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 submitted to the trustee.

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