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How is a Licensed Insolvency Trustee Paid?
December 1st, 2015
The costs of filing for faillite are set both by the federal government and the trustee. This means that the fees you pay to a Licensed Insolvency Trustee for handling your faillite will likely be the same across the country.
Generally speaking, a bankrupt with no surplus income can expect to pay approximately $200 per month to a trustee for the administration of his/her faillite estate. This amount will cover costs that include:
- a fee for filing the necessary papers with the Office of the Superintendent of Bankruptcy
- fees for your two mandatory counselling sessions
- fees for administration of the file
- a fee for a Bankruptcy Court hearing if one is necessary
- GST/HST on all of the above.
In Canada, the trustee will accumulate the payments. The fee paid to the trustee is a tariff as set by the Bankruptcy and Insolvency Act and is the same for any trustee in Canada.
Any balance left over after the trustee’s fees are paid in full will be divided pro-rata amongst your creditors.
If you do have surplus income, or if your faillite situation is more complex, your costs will increase accordingly. To find out more about the costs involved with filing for faillite—or to learn what your other options might be available — call us today for your free, no obligation consultation with one of our insolvency experts. In Ottawa call 613-237-5555; out of town, call toll-free 1-800-517-9926 or book online.